Merging Lane Ahead! Why Tesla Might Have To Merge With Workhorse And Nikola Motors
Legacy car manufacturers are about to begin producing EVs in earnest. In response, I believe Tesla will have to do something drastic to meet shareholder expectations. The price of Tesla shares indicates that shareholders expect Tesla to become the dominant car manufacturer in the world.
Legacy car manufacturers pose a great risk to Tesla. For one, they are highly capitalized and already have the facilities to produce a diversified group of EVs. I suspect, the market is going to want a wider range of vehicles than Tesla currently offers.
To better compete in the near future, it would be prudent for Tesla to approach other native-EV manufacturers. Tesla would do well to consider a merger with their smaller competition. American EV companies would be the best partner for Tesla. Not only would they have a similar brand story, but the US EV industry could be strengthened as a whole. At least, it could help the country better compete with the competition coming out of China and Europe.
