Tesla (NASDAQ: TSLA) and SpaceX CEO Elon Musk was just awarded in Berlin, Germany the 2020 Axel Springer Award, an award honoring outstanding personalities that are not only remarkably creative and innovative but also culture influencers that strive for positive, global change.
In a wide-ranging interview — first noticed on CNBC — with the media giant’s CEO Mathias Döpfner, Musk was asked whether or not the electric vehicle maker, whose $554 billion market cap far exceeds the valuations of automakers like GM, Ford, BMW, Daimler and VW, would consider a merger with one of the incumbent car companies.
“Well, I think we are definitely not going to launch a hostile takeover,” Musk said. “So I suppose if there was a friendly one, if somebody said, ‘hey, we think it would be a good idea to merge with Tesla,’ we certainly could have that conversation. But, you know, we don’t want it to be a hostile takeover sort of situation.”
The two execs were discussing a purely theoretical scenario.
Musk is reportedly also calling upon Tesla employees to implement drastic cost-cutting measures. That’s according to internal emails obtained Tuesday by elektrek and CNBC. The CEO described Tesla’s line of business as a “tough Game of Pennies”, noting that the company’s actual profitability over the past year has been very low at around 1 percent.
Musk warned that without significant cost-cutting efforts Tesla’s “stock will immediately get crushed like a souffle under a sledgehammer!”
Tesla Stock Price Action
Tesla shares closed 3.02% higher at $584.76 on Tuesday. The shares traded 13 points lower at $571.23 in the pre-market session on Wednesday.