Banner Vehicles July 2019

How Close are Ford & Tesla?


Tesla's Elon MuskThere has been a number of rumours circulating in the media that Elon Musk was considering buying the Ford Motor Company. Almost all the rumours have been dismissed, however, recent developments suggest that there is a collaborative approach or partnership between the two.

Ford’s CEO Jim Farley revealed that Ford owners will soon be able to access Tesla's Supercharger network, expanding the charging locations for Ford's EV owners. This move indicates a willingness to cooperate rather than be in direct competition.

Ford's Jim FarleyIt also sounds like they plan to go beyond the charging network. Jim Farley talked about Ford's next-generation vehicle development being on a similar path to Tesla's, particularly regarding its 48-Volt electrical systems.

This alignment in technological direction further suggests that Musk and Tesla view Ford as a potential friend in the EV market rather than an acquisition target.

Tesla's EV market dominance has often given fuel to potential acquisitions for Musk. Some analysts have pointed to Ford's strong brand recognition and manufacturing abilities that could complement or add to Tesla's innovative technology.

Some investors believe a merger could speed up the transition to EV’s globally. However, real evidence supporting these claims remains scarce.

Elon Musk X (Twitter) PuchaseElon Musk's history of high-profile acquisitions has contributed to the Ford purchase rumour. The $44 billion takeover of Twitter in 2022 demonstrated his willingness to pursue large-scale deals.

Musk's earlier acquisitions, such as SolarCity's integration into Tesla, showcased his strategy of vertical integration. Musk has not publicly expressed an interest in acquiring Ford, and such a move would face significant regulatory scrutiny.

Elon Musk buying Ford remains highly unlikely in most people's opinion. Despite recent collaborations between Tesla and Ford, there's no indication of a potential acquisition.

Ford continues to pursue its own EV strategy and offers a different product to Tesla. Also the company is investing in Internal Combustion vehicles as well as EV’s. Tesla and Ford are competitors in the EV market and their partnership on charging infrastructure doesn't signal broader merger intentions. Both companies face challenges in the rapidly evolving EV landscape. Ford is adapting its approach, while Tesla maintains its market-leading position.

The automotive industry is undergoing significant transformation and reassessment. EV’s are not selling at the rate that everyone expected. It seems that the market is not convinced that electric vehicles that carry a different set of issues are the only solution for the auto industry.

The larger automakers like Ford, GM, Toyota and VW are currently rethinking their EV strategies. A collaboration between Tesla and Ford may benefit both companies by expanding charging options for EV owners and may promote wider EV adoption.

Both Tesla and Ford will likely continue to operate as separate entities, competing and occasionally collaborating. The future for the auto industry must rest with companies like Ford and Tesla providing vehicles for what customers want and not what governments think is best for people.

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