Skip advert
Advertisement
Opinion

“A Tesla merger? How about one with Volkswagen?”

With Elon Musk saying if a merger with another firm were on the cards he “would have this conversation”, and Volkswagen streamlining its operations, could VW and Tesla join forces?

Mergers between huge car companies are nothing new. The recently formed Stellantis brand, a union between Groupe PSA and FCA, brought together 14 individual firms including Maserati and Vauxhall, the latter of which was only acquired by its PSA parent three years ago.

With manufacturers across the world keen to pool resources, development costs and, increasingly, carbon-dioxide emissions, sense is to be found in the prospect of a merger between EV maker Tesla, and Volkswagen Group. Because while VW Group’s push into electric cars is now fully underway, the German manufacturer’s fleet average CO2 emissions stood at 123.6g/km as of March this year according to analysts at Jato, against a European Commission target of 95g/km for 2021. 

Advertisement - Article continues below

Car makers not meeting that fleet 95g/km target face big fines and some firms, such as FCA, have already paid to ‘pool’ their emissions with Tesla in order to offset potential penalties. A full-blown VW/Tesla partnership would presumably have a significant impact on Volkswagen Group’s fleet emissions. VW Group, meanwhile, could apply its almost peerless mass-production know-how to Tesla’s cars.

There are other indications that a merger between Tesla and Volkswagen Group could be possible. Tesla boss Elon Musk recently said: “We are definitely not going to launch a hostile takeover, but if somebody said it would be a good idea to merge with Tesla, we would have this conversation.”

Skip advert
Advertisement
Skip advert
Advertisement - Article continues below

VW Group boss Herbert Diess, meanwhile, spent one-on-one time with Elon Musk this year, giving the Tesla chief executive the opportunity to drive VW’s new ID.3 electric hatch. Diess subsequently said “there is no deal/cooperation in the making” between Tesla and Volkswagen, but Diess has also admitted Tesla technological lead in gives him “headaches”, according to internal VW communications reportedly obtained by German magazine Automobilwoche.

Automobilwoche said Diess wrote: “What worries me the most is the capabilities in the assistance systems. 500,000 Teslas function as a neural network that continuously collects data and provides the customer a new driving experience every 14 days with improved properties. No other automobile manufacturer can do that today.” 

If one starts with the premise that a merger is on the cards, more evidence emerges that indicates this could be a possibility. Volkswagen Group is selling hypercar maker Bugatti to Rimac, according to reports, while rumours indicate the German giant could also sell Lamborghini

Other streamlining, cash-releasing operations include the recent announcement that Volkswagen is to halt all motorsport activities, integrating staff from Volkswagen Motorsport GmbH into the main Volkswagen AG company. Tesla, meanwhile, is brimming with cash, at least in terms of stock-market valuation, overtaking Toyota this summer to be the most valuable car maker in the world, with its share price climbing ever since.

Speculation of a merger between Volkswagen and Tesla is just that, and it is possible these signs are incidental, and signify nothing. But if a merger is announced between the world’s most highly valued car maker and the largest manufacturer by volume, you read it here first.

Tesla and Volkswagen Group declined to comment.

Do you think a Tesla-Volkswagen merger could happen? Let us know your thoughts in the comments section...

Skip advert
Advertisement

Find a car with the experts

Skip advert
Advertisement

Recommended

Best electric car deals: today's top discounts and incentives on new EVs
Best electric car deals - header image

Best electric car deals: today's top discounts and incentives on new EVs

Making the switch to an EV? These car brands have an offer (or two) for you
Best cars & vans
28 Apr 2025
Tesla, Trump and tumbling sales: what’s going on with Musk’s EV brand?
Tesla Model 3 - front cornering

Tesla, Trump and tumbling sales: what’s going on with Musk’s EV brand?

Revenue from Tesla’s car sales dropped by a fifth in Q1 compared to 2024, with Elon Musk stating he will step back from his US government role under P…
News
24 Apr 2025
Volkswagen ID.Every1 concept: entry-level ID.1 EV will ‘still feel like a Volkswagen’
Volkswagen ID.Every1 concept - front action

Volkswagen ID.Every1 concept: entry-level ID.1 EV will ‘still feel like a Volkswagen’

The Volkswagen ID.1 will arrive in 2027 and look to start below £20,000
News
23 Apr 2025
Volkswagen to extend its range with range-extender PHEVs for Europe
Volkswagen Touareg - front cornering

Volkswagen to extend its range with range-extender PHEVs for Europe

EV-lite range-extender technology could prolong the shelf-life of Volkswagen’s petrol engine offerings to 2030 and beyond
News
23 Apr 2025

Most Popular

New Kia PV5 Passenger MPV undercuts the VW ID.Buzz by a huge £25k
Kia PV5 Passenger - show front

New Kia PV5 Passenger MPV undercuts the VW ID.Buzz by a huge £25k

New entry into the electric people carrier market undercuts the VW ID. Buzz by a significant margin
News
29 Apr 2025
Car Deal of the Day: BMW’s ultimate luxury SUV at an unusually low price
BMW X7 - front

Car Deal of the Day: BMW’s ultimate luxury SUV at an unusually low price

German firm’s flagship SUV could never be called cheap but it is exceptional value at £735 a month – making it our Deal of the Day for Sunday 27 April
News
27 Apr 2025
New 2025 Kia PV5 van starts from a tempting £22,645
Kia PV5 Cargo on display at Commercial Vehicle Show - front 3/4

New 2025 Kia PV5 van starts from a tempting £22,645

All-new entry into the van market promises competitive pricing and comes with a range of up to 247 miles
News
30 Apr 2025