Will There be a Tesla-GM Merger?

05.08.17 - Tesla CEO Elon Musk

You might think the fact that the direct competition for the upcoming Tesla Model 3 is the Chevrolet Bolt or the fact that the Bolt has beaten the Model 3 to the market that a merger between these two companies would be the last thing anyone would talk about. The fact is the combination of these two would make more sense than either of them continuing along on their own merits trying to outperform the other and take the market of the EV world by storm. If we want to see EV models become a serious part of our automotive world, we need to see something change.

Right now both GM and Tesla have their own merits and their own detriments to the position they hold when it comes to the EV market that’s new and ready to be enjoyed. Tesla is a boutique company that hasn’t yet been able to produce vehicles in the volume numbers of some of the other automakers but they haven’t had to. This company has been providing us with advanced technology and EV products that are right for the road and carry the clout that have made Tesla a highly valuable company.

GM has been the top company in the domestic market for several decades with more brands and vehicles under its roof than any other. GM has been the leader and offers the production space and team of experts that can handle any job asked of them and have. The engineers at GM beat the team at Tesla to the market with a car that can operate on electric only and come at a price that’s easily affordable for anyone who wants to drive one of these excellent cars. There’s no doubt GM is the biggest fish in the pond when it comes to the companies making vehicles in the US.

As for the troubled waters you might find, Tesla has had a history of vehicles that fail, need to have parts changed and production runs that are behind schedule. This company has yet to be able to meet a deadline when it comes to bringing a vehicle to market and because of this the idea that Tesla will sell a car that everyone can afford and offer it at a high volume number is close to ridiculous to even consider. This makes the challenge of the Model 3 one that Tesla may not be ready to take on and be much larger a bite than what they could afford to take out of this particular pie.

For GM the fact that the Bolt is offered under the Chevrolet brand actually works against this car. If the Bolt were able to be sold under a different brand name GM might be able to demand a higher price for this car than what it’s being sold at right now. Some of the brands an vehicles offered by GM have been considered to be some of the value offerings on the market, which doesn’t always translate to higher profits for the company.

The fear factor for Tesla could be the fact that GM has swallowed up brands over the years and in some cases have spit them out when their usefulness has expired. Tesla wouldn’t be in the same boat as most of these other brands because they have a huge value to bring to the table and demand an equal share of the input when it comes to development and technology. This could become a huge advantage for both companies, or it could be an explosion that leaves both in shambles of sorts.

Imagine the technology of Tesla being produced by the team of GM. That can be the right way to have the vehicles that could be the right way to enjoy a large production of advanced models and create the best way to merge technology and production together. With a merger of this type it might be the GM-Tesla brand that makes it to the autonomous world first for us to enjoy having vehicles that don’t require a driver. Only time will tell if this merger happens and becomes a match made in heavy or never gets off the ground.

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