Despite ‘bad study’, Tesla CEO asserts that company will remain independent

Article by Christian A., on March 30, 2011

In response to a study that stated that Tesla Motors Inc. is a “prime acquisition target” and won’t succeed as an independent company, CEO Elon Musk retorts that this is a bad study and that the company will remain independent.

In Nasdaq Stock Market composite trading last Monday, the electric carmaker rose by up to 3.5% after the Business Insider Web site published a column by two University of Virginia students with this analysis.

By e-mail, Musk responded that like nearly all public companies, Tesla is a potential takeover target. But he remains “highly confident” that it can make it as an independent firm.

With the aid of supply agreements with Toyota Motor Corp. and Daimler AG, Tesla aims to be the leader in battery-powered cars, says Autonews.

Notably, Toyota and Daimler own stakes in Tesla. Last month, the Palo Alto, California-based company reported that its fourth-quarter net loss widened to $51.4 million from $23.2 million a year ago as it boosted investment in the Model S, an electric sedan that’s expected to arrive in 2012.

Musk admitted though that it’s “incredibly difficult” to build a new company in the auto industry. Musk said that a major obstacle is the “huge technology shift.”

Musk also serves as the CEO of Space Exploration Technologies Inc., a privately held rocket launch company that’s headquartered in Hawthorne, California. .

Topics: tesla, ceo

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