Paving Way For Electric Car Adoption: Tesla Motors Inc. (NASDAQ:TSLA) And Bayerische Motoren Werke AG (ETR FRA:BMW) Alliance On The Works


Tesla Motors Inc. (NASDAQ:TSLA) had the audacity of shifting to the luxury greenmobile market and reigned over these waters for quite some time. While Bayerische Motoren Werke AG (ETR FRA:BMW)’s presence in the latter’s territory has added to the competition, an interesting spin of events may be likely to take place in order to keep the red out of the blue.


U.S. carmaker, Tesla Motors Inc. (NASDAQ:TSLA)’s Model S was triumphed over by BMW AG (ETR FRA:BMW)’s all-electric version of i3. Nonetheless, Tesla Motors Inc. (NASDAQ:TSLA)’s Chief Executive, Elon Musk confirmed last Sunday that they are currently in dialogue with them over a possible partnership in car batteries and carbon fiber components. According to Musk on Sunday, BMW AG (ETR FRA:BMW)’s carbon fiber-reinforced body parts are interesting and relatively cost-efficient.

BMW (ETR FRA:BMW) partnered with its materials supplier SGL (ETR:SGL) to make reinforced passenger cell parts for its i3 electric hatchback and i8 plug-in hybrid sports car. Both cars are part of their “i” series of electric cars. BMW (ETR FRA:BMW) was able to create a somewhat more economical electric vehicle, and this may pull some of Tesla Motors Inc. (NASDAQ:TSLA)’s buyers. With this, people are most likely expecting to see both companies race with each other through the green-mobile market. It seems like both carmakers regard the sustainable development in the industry’s technology far more important than a nice race to the top.

While no specifics have been divulged as to what the alliance’s nature is, executives of both companies have already been reported to have met earlier this year in June for the creation of charging stations that may be used by several types of electric cars. Musk says that the partnership may either be forged for battery technology or charging stations.


Daimler AG (OTCMKTS:DDAIF) gave up their owned 4%  Tesla Motors Inc. (NASDAQ:TSLA) stake, but they said last month that they wish to continue to collaborate with the U.S. company. Apart from their previous joint venture on electric SUVs with Toyota Motor Corp (NYSE:TM), Tesla Motors Inc. (NASDAQ:TSLA) also has sold its electric drive trains to them in the past. Adding BMW (ETR FRA:BMW) to their list of collaborators may prompt a significant turn in the further development and in the faster adoption of electric vehicles unlike what was previously expected.

Both carmakers are committed to electro mobility and are striving to strengthen the market according to a BMW (ETR FRA:BMW) representative. While Tesla Motors Inc. (NASDAQ:TSLA) already has key charging stations along Germany’s autobahn, Musk adds to Der Spiegel that he expects for them to have a battery production plant in the country in the next five to six years.


The public has yet to take on the idea of electric cars due to their limited operating range, the lack of charging stations, and the long charging times. In case a successful partnership will be forged between the two companies, the progress in the technology necessary for the realization of the proliferation of greener cars internationally may be catapulted forward sooner.