NEWS: Musk: Tesla “Can Succeed As An Independent Company,” Takeover Unlikely

March 30, 2011
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After a recent Web column said Tesla was a “prime acquisition target,” CEO Elon Musk has fired back a response.
For as long as Tesla has been doing business, there have been deathwatches and critical analyses of the Palo Alto-based automaker. Recently, the Business Insider Web site hosted a column titled, “Why Electric Carmaker Tesla Motors Will Likely Be Acquired,” submitted by two University of Virginia students studying at the McIntire School of Commerce. Though the authors don’t appear to doubt Tesla’s products and ideals, they believe the company itself cannot carry on alone and would be ripe for takeover within the next three to five years.
Tesla boss Musk dismisses the Business Insider column, acknowledging the difficulty of entering the auto business, but stating Tesla can pull it off.
"Their analysis of Tesla is incredibly bad," said Musk by e-mail to Automotive News. "Tesla is of course a potential takeover target, like almost all public companies. However, I'm also highly confident that we can succeed as an independent company."
With the Model S in the pipeline and scheduled for full production in 2012, Tesla will need its all-electric family sedan to hit the ground running. Whether there’s a takeover or not, it’s simple really: no sales, no business.
Sources: Automotive News (Subscription required), Business Insider
Tesla Model S Front Angle

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