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

Extra-hot electric Volkswagen GTI Clubsport models are on their way
Volkswagen Golf GTI Clubsport - cornering

Extra-hot electric Volkswagen GTI Clubsport models are on their way

Electric hot hatches are front and centre in Volkswagen’s electric future
News
30 Jun 2025
Volkswagen leasing deals 2025
Volkswagen Golf facelift 2024 UK - front tracking

Volkswagen leasing deals 2025

The best Volkswagen leasing deals available right now
Best cars & vans
27 Jun 2025
Tesla Robotaxis on the hook for erratic driving on wrong side of the road
Tesla Model Y - front tracking

Tesla Robotaxis on the hook for erratic driving on wrong side of the road

US officials are in touch with Tesla over footage showing erratic driving by the firm’s modified Model Y Robotaxis
News
25 Jun 2025
Best new cars coming soon: all the big new car launches due in 2025, 2026 and beyond
New cars coming soon header image

Best new cars coming soon: all the big new car launches due in 2025, 2026 and beyond

These are the most important new cars headed our way, from brands including Audi, BMW, Dacia, Ferrari, Ford, Skoda and more
Best cars & vans
23 Jun 2025

Most Popular

Range Rover Sport SV gets massive £35k price drop as it enters series-production
Range Rover Sport SV Black - front

Range Rover Sport SV gets massive £35k price drop as it enters series-production

There’s also a new SV Black trim, and a Range Rover Sport Stealth Package for non SVs
News
1 Jul 2025
Arrivederci Roma: new Ferrari Amalfi slots in as brand’s latest entry-level model
Ferrari Amalfi - front static

Arrivederci Roma: new Ferrari Amalfi slots in as brand’s latest entry-level model

A slick new look and more power are the headlines for Ferrari’s new baby, but it’s probably some simple new buttons that will get customers’ attention
News
1 Jul 2025
Geely is coming to the UK, and its assault will start with EX5 SUV
Geely EX5 - front

Geely is coming to the UK, and its assault will start with EX5 SUV

Geely has looked to Lotus to ensure it's new electric SUV lives up to our driving expectations
News
2 Jul 2025