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Tesla Inc (NASDAQ: TSLA) CEO Elon Musk said on Monday that the electric vehicle maker was ready to merge with a theoretically inherited automaker, but that such a transaction should be friendly, not hostile.
What happened: Musk made the disclosure in an interview with Mathias Doepfner, CEO of German publishing house Axel Springer SE at a live event, first noticed on CNBC.
“I think we’re definitely not going to launch a hostile takeover,” Musk told Doepfner. “If someone were to say, ‘hey, we think it would be a good idea to merge with Tesla,’ we would definitely have this conversation. But we don’t want this to be a hostile takeover situation.
The two leaders were discussing a purely theoretical scenario.
Why is this important: Last month Tesla’s valuation was higher than any of the legacy automakers, including General Motors Company (NYSE: GM), Ford Motor Company (NYSE: F), and Fiat Chrysler Automobiles NV (NYSE: FCAU) – put together.
Musk also reportedly called on employees to take significant cost-cutting action. The CEO described Tesla’s industry as a “hard game” in a memo and warned employees if they don’t cut costs “[Tesla] the stock will be immediately crushed like a souffle under a hammer!
Price action: Tesla shares closed nearly 3% higher at $ 584.76 on Monday and fell 1.59% to $ 575.48 in the after-hours session.
Photo by Daniel Oberhaus on Flickr
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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