Tesla Motors Inc, BMW In Discussions About Batteries: Musk

Tesla Motors Inc, BMW In Discussions About Batteries: Musk
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Tesla Motors Inc (NASDAQ:TSLA) is in discussions with German car maker BMW about batteries and lightweight components, Tesla Chief Executive Elon Musk told German weekly Der Spiegel. Musk, during an interview on Sunday, called BMW’s production of carbon fiber reinforced car body parts “interesting” and “relatively cost efficient,” according to Reuters.

Talks about battery technology, charging stations

SGL, BMW’s market supplier, is making reinforced passenger cell parts for the BMW i3 electric hatchback and i8 plug-in hybrid sports car. There was no comment from BMW about the report.

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“We are talking about whether we can collaborate in battery technology or charging stations,” Musk was quoted as saying in an interview.

However, other details about a potential Tesla-BMW joint venture largely remain under the hood. Executives from Tesla and BMW already talked back in June about developing charging stations for different types of electric cars.

Tesla seems to be a favored company by auto juggernauts. Daimler, the maker of the Mercedes brand, recently said it will collaborate with Tesla even after offloading its own 4% stake in the U.S.-based company. Tesla has also worked in a joint venture with Toyota on electric SUVs. Tesla’s CEO also told Der Spiegel that he is looking forward to a Tesla battery production plant in Germany in five to six years.

Ron Barron positive on Tesla

Recently Ron Baron, owner of investment firm Baron Capital Group, said, “All of us will likely be Tesla customers in 25 years.” Baron said he is a fan of Tesla Motors CEO Elon Musk and that the company has achieved a “built to last” quality with its Model S car that is a distinctive factor compared to competitors with regard to near and far-term prospects/opportunities.’

“While they may only make 1 million cars per year within the next decade, farther out, the automaker could end up rivaling” GM or Toyota in its size with the growing popularity of electric vehicles. Baron said during an interview with CNBC that it is high time for the shift to be made to cheaper electric propulsion. As of now, Tesla is dealing with automakers, unions and car dealers, which are a big hurdle for the company, primarily because of its capability to cut their profit margins, jobs, and services, said Barron.

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