First Toyota invested $60 million in Tesla, then they upped it to $100 million. Now Elon Musk is telling reporters that his company is in talks with Toyota to finalize a $1 billion deal. A billion dollar deal would equal 40% of Telsa's current market cap. Could an acquisition be coming? Musk said the just-ended second quarter was the best in Tesla's history, with tremendous demand for the Roadster sports car and the upcoming Model S sedan—both battery-electric vehicles—as well as signing a $100 million deal with Toyota, and "we're in discussions with them for a deal that is an order of magnitude larger than that." A Tesla official later confirmed to AutoObserver that by "order of magnitude," Musk was stating that the 8-year-old company was discussing a $1 billion deal with the world's largest automaker. Source [AutoObserver]
only if the owners of tesla want to sell-out and don't see their company's value appreciating but of course if they are hurting for cash or need a cash infusion then selling 40% of the company makes sense their intellectual property could be worth far more than the current market cap
Toysla? Tesota? I'd like to see what Tesla can do with the cash infusion, first. Obviously Toyota values what Tesla management has done so far. Hopefully they can be patient and let them continue, without taking over. The partnership should work out well for both companies.
I agree and I would keep both companies independent even if owned by Toyota. A Tesla-Lexus cooperation would help Lexus put EVs on the road as soon as possible. SAAB has had money issues for a while now. It is good to know that Tesla will have funds and build some Toyota EV models at that plant.
Toysla, definitely. Given what Toyota have done in other areas, I'd expect Toyota would be quite happy with a joint venture.
toyota would probably turn it into a prius brand.. tesla is waiting on the cash to build electric cars for everyone but toyota has the cash so they would probably merge it into their current plans in some way.... i can be hopeful, right?
I think Toyota will keep the Prius brand seperate from the EV brands. Someone on Teslamotorsclub.com suggested this might be a move toward having Toyota dealers trained in servicing Teslas and Toyota EVs...that would be great for us living in BFE.
Back when GM was filing bankruptcy, I remember all the articles about the new AMERICAN automakers that were making hybrids, plug-ins, electrics - the list of companies included Tesla - and now our hope for a new American automaker that could be huge in the future may see an early ending, as Toyota eats it. I would love to see Toyota have access to the technology, and vise-versa, through a partnership, but if Toyota buys Tesla in full, then the dream of Tesla being a future hope for a major American automaker will be extinguished. To me, this news is bitter-sweet. I would much rather see a partnership than a buy out.
I think Tesla needs Toyota more then Toyota needs Tesla. Making a car from the ground up is hard, and the first one was a real challenge for Tesla and they started from a 'glider' made from Lotus. I am not minimizing what Tesla has done, they really are unique in the automotive world. They built an electric car with real range and performance. As far as I know they have made the largest volume of electric cars sold in the US (though soon the Leaf will unseat them). For the next model, Tesla needs Toyota's manufacturing expertise to do it on schedule. Toyota acquiring Tesla not only will make Toyota stronger, but will in my opinion allow the model S to come out sooner and maybe better. Toyota can use Tesla's battery and control tech, and it may be faster to buy Tesla then develop it in house... and they get a bunch of patents as well. It is a win-win for both for them to merge.
I too am excited in this business venture. Both companies utilizing aspects from one another. For me the tesla model s is everything I want in a car, IF they produce the quality they are predicting. I would more likely spend 50k on the model s then a BMW. I look forward to see this car in person. I may also wait a model year before purchasing to make sure all their kinks are worked out.
Not as bitter as if GM bought Tesla, instead of Toyota. Man - GM buying something is like throwing a typhoid infested blanked on someone.