Tesla (NASDAQ:TSLA) And BMW Likely To Join Hands


Americas sole electric automaker, Tesla Motors Inc. (NASDAQ:TSLA) and German carmaker BMW are under discussion on whether or not the two companies should join hands for battery production for electric automobiles and other lightweight EV components. The CEO of Tesla (NASDAQ:TSLA), Elon Musk shared this news on Sunday while talking to a German based magazine called Der Spiegel.

Musk said that he was highly impressed with the way BMW used carbon fibres to produce the exterior body part of automobiles; the method according to Musk is cost efficient. Musk further said that the two companies are talking about whether they can have an alliance in battery technology or charging stations.

Tesla (NASDAQ:TSLA) is discreet with most of its developments and the scope of this collaboration is no exception. However, Musk has said that Germany in the coming five to six years will be able to establish its own Tesla (NASDAQ:TSLA) lithium ion-battery.

BMW which is without a doubt world’s largest luxury automaker is also one of the more progressive automakers in the electronic vehicle’s (EV) category.

By mid-2014, the German company, BMW came out with its mid-range electric i3 in the US market, which was an immediate hit amongst the EV enthusiasts. BMW’s i8 plug-in hybrid sports car was also a huge success, which shocked the rivals due to its premium alternate fuel ability. Other than BMW’s novel EV and plug-in offerings, the German automobile company is devoted to produce and promote a prevalent network of EV charging stations to back the top line of its EV and plug-in automobile’s arm. BMW  is focusing on more vast and broader network with more charging outlets which will be established across US with much cheaper and smaller installation, this is something that Tesla (NASDAQ:TSLA) is not focussing on doing.

Both Tesla (NASDAQ:TSLA) and BMW are making huge impact in the EV field and therefore can relate to each other’s plans and ideas on the subject. The collaboration between the two companies is highly probable due to their interest in the field and this collaboration will help them bring their unique ideas, methods and technology together which will help them overcome the EV market.

BMW took the initiative of approaching Tesla (NASDAQ:TSLA) earlier in June with the proposal of collaboration between the two companies. This was done around the same time when Musk announced the release of all of Tesla’s (NASDAQ:TSLA) 200 technology patents. This was done by Tesla (NASDAQ:TSLA) to impress other automaker companies that were reluctant on expanding their EV brands due to technological production hurdles.

On Friday Tesla’s (NASDAQ:TSLA) shares were 2.38% low and closed at $242.78. The shares showed a 6% decline in the last trading week.

The collaboration of Tesla (NASDAQ:TSLA) with BMW will definitely help the company boost its shares in the future. The merger will be beneficial for both the companies. What is to be seen is whether or not the talks between the two companies will be successful and what will be the outcome of the collaboration.