Thursday, February 20, 2014

Tesla's Elon Musk says an acquisition of his company -- by anyone -- 'very' unlikely

Those who were excited by recent reports that Apple and Tesla met last spring, thinking it meant that Apple was on course to acquire the electric car maker, can calm down now. MacRumors reported on Wednesday that, while confirming that his company "had conversations" with Apple, Tesla founder and CEO Elon Musk said that "at the current time," an acquisition -- by anyone -- was unlikely.

The reason, Musk said, is that his company needs to continue to be "super focused" on its goal of creating an affordable electric car.
If there was a scenario where it seemed like it would be more likely that we would be able to create the mass market sort of affordable, compelling car then possibly it would make sense to entertain those discussions. I don't currently see any scenario that would improve that probability, so that's why I think it's very unlikely.
In addition, speaking of whether or not any such talks occurred last year, Musk said:
If one or more companies had approached us last year about such things there's no way we could really comment on that. We had conversations with Apple, I can't comment on whether those revolved around any kind of acquisition.
Notably, last month Musk announced plans for a huge lithium-ion battery plant, obviously important for a company which makes only electric-powered cars. He said the plant will be constructed in partnership with "some other companies."

It's possible that Apple, which has always placed battery life atop the requirements for its products, might be involved in that project. Tesla is expected announcement more details about the plant later this month.

The Bloomberg interview is embedded.

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