VW Officially Denies It Intends Buying A Stake In Tesla, But The Truth Is They’d Love To

Volkswagen has officially denied a media report it is going to buy a stake in Tesla, but the truth is a little more complicated than that.

Germany’s Manager Magazin wrote yesterday that VW Group CEO Herbert Diess wanted to buy shares in the U.S. EV manufacturer in order to gain access to its software and battery technology.

The publication also claimed Diess meets with Tesla CEO Elon Musk on a regular basis and that the latter had so far rejected VW’s efforts to form an alliance.

Also Read: Ford To Launch MEB-Based EV In 2023, VW To Buy A Stake In Argo AI

“The speculation about buying a stake in Tesla made by Manager Magazin is without merit,” a Volkswagen spokesman told Reuters. The magazine, however, quoted an unidentified top Volkswagen manager as saying that “Diess would go in right away if he could.” According to the report, acquiring a stake would allow the German carmaker to access Tesla’s technological expertise.

VW Group CEO Herbert Diess

Such a deal, though, could meet opposition from Volkswagen’s controlling Piech and Porsche families when it comes to funding the stake purchase.

Currently, Tesla is valued at around $30 billion (approximately €27 billion), which makes it too pricey even for a giant like Volkswagen. The German company currently faces numerous Dieselgate-related fines and lawsuits, as well as massive investments in the development and production of electric vehicles, so investing that kind of money would stretch its finances too much.

A banker close to VW allegedly told Manager Magazin that Diess would love to have Tesla’s software developers, but admits it was almost impossible to justify buying the whole company.

A major automaker holding a stake in Tesla would not be something new. Over the years, the U.S. EV specialist was partly owned by Toyota and Daimler. Both automakers eventually sold their stakes after Musk’s company went public and the stock’s value increased significantly.

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  • NO DOUBT A BARRAGE OF VW AND TESLA HATERS WILL BE HERE TO COMMENT.

  • jfalckt

    yeah ok

  • jfalckt
    • SD38439

      Who cares?

    • Daniela Wolf

      Let me guess the Thule community is still alive?
      U tried to storm area 51?

  • jfalckt

    Tesla isn’t really touching the sides

  • Сафиуллинь-Мухамед Рамазанов

    Honestly that ignite another important question
    Why Toyota & Daimler sold their own stakes ?

    • JqC

      Because, I presume, the stakes weren’t high enough to have any sort of controlling interest allowing technological acquisition, and the high gains in the stock would have been a realisable profit that no corporate Financial Controller could ignore.

  • JqC

    Under no circumstances should Tesla allow VW access to it’s tech. The point of Tesla is to accelerate the entire automotive industry towards electrification. They can best do that by leading by example, but not by supplying the technology. You want multiple companies developing their own paths towards technology. And you specifically want those who cannot pivot in time to die, in order to set a clear example that the time for ICE is at an end. And I say this as a person that loves the VW company and hope and feel that it will be one of the survivors.

    In a few years, Tesla will be able to buy VW. Not that it should.

  • We’re not buying a stake.
    We’ve talked to Musk numerous times.
    We would buy a stake.
    Nothing confusing here.
    Tesla is doing well developing tech, but not so much in sales and profit. Might be interesting to develop the tech and let VW build it, but I think Tesla and SpaceX are his babies and too personal to let someone interrupt his vision, unless he had final say.

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