Elon Musk Just SIGNED The Papers To Buy Mercedes (2022)

Elon Musk’s new plan to buy Mercedes will destroy the industry: Have you heard about the discussion about Elon Musk buying Mercedes? Surprising, right? But let me tell you that it’s not new. Musk reportedly said at a 2020 conference that he was open to the idea of a deal with another carmaker. But at that time no one ever thought of this deal.

So, why are they trying to buy Mercedes, and what are the advantages of Tesla acquiring Mercedes? Is it really happening, or Musk is just teasing just like every time.

Well, during Tesla’s early development phase, Mercedes-Benz parent company Daimler AG offered some assistance. Mercedes gave Tesla a 50 million investment, which equaled 10% of the company, and now Tesla is repaying the favor by buying Mercedes outright.

There were reports that a Tesla-Daimler merger would take place shortly, and that Tesla would swallow Mercedes-Benz’s parent company, Daimler. Due to this investment, Mercedes engineers saw how Musk would release a technology that wasn’t perfect, then continuously improve it via software updates. And this collaboration made the organization stronger.

In May 2009, at the Mercedes-Benz museum in Stuttgart, Mercedes-Benz and Tesla announced they were forming an alliance to “accelerate the development of Model S and ensure it meets the highest quality standards”.

According to the plans, Mercedes will use Tesla battery solutions to power an electric version of the Mercedes-Benz B-Glass that it intends to release in the near future. Tesla is expected to release its Model S by 2012.

Within two years, an electric version of the B-Glass was introduced in showrooms. So, with this new method, software design, and electrical architecture, Tesla was able to implement improvements faster than its rivals, prompting people to draw parallels between Tesla and Apple.

(Video) FINALLY! Elon Musk JUST SIGNED The Papers To Buy Mercedes!

Even Mercedes engineers helped Tesla with the Model S premium vehicle in exchange for access to Tesla’s partially assembled battery packs. But when Daimler sold its shares in 2014, they did it due to concerns about Tesla’s scalability.

Right now Tesla has a market cap of more than $1 trillion which is more than 100 times that of Daimler, which is worth $88 billion. Although Mercedes-Benz alone sold 9,35,089 cars in the first half of 2020, that’s still a lot more than Tesla sold — 1,79,050 cars.

Daimler, which owns Mercedes-Benz, appears at the bottom of the list of automobile companies ranked by their market capitalization, with a market share of less than ten percent of Tesla. It might seem weird for an organization that’s been around for decades to outperform a startup just starting out.

In terms of investments, Daimler hasn’t always followed this strategy. In 2012, when the company invested $50 million in Tesla, the company bought 10% of the company. It was enough for Daimler to get a board seat. Daimler will make a lot of money when it sells its Tesla stake for $718 million.

But if Daimler had held on to his shares for less than five years, the firm would have been worth more than the entire institution, which is approximately $100 billion dollars. Elon Musk said Daimler was a pioneer in the field of sustainable mobility and pouch-cell batteries. So, does Tesla have a plan to build an electric empire?

Well, Tesla would be considered one of its biggest acquisitions since it bought SolarCity for $2.6 billion in 2016. Obviously, such a deal would change everything about Tesla-but not everyone is convinced by what they’ve heard so far.

The billionaire businessman aims to beef up his automotive empire with a majority stake in Mercedes. Just when you thought Tesla couldn’t get any weirder, Elon wants to tie in Mercedes’ incredible reputation as a high-end carmaker. But when you think about it, Musk would have total control over 2 of the biggest automakers on earth.

(Video) FINALLY ! Elon Musk Just SIGNED The Papers To Buy Mercedes

After all, he has just 33% ownership in Tesla, but if he bought out Daimler he would have 60% ownership in 2 car companies that each make millions of cars every year. It’s hard to find a better example of too much power than buying out Mercedes.

According to a report published by The Times, Tesla CEO Elon Musk has put forward a plan of buying the stake that Daimler (Mercedes) owns in Tesla; that stake is worth $2 billion. Clearly, this is crazy on so many levels, but it could have incredible implications for consumers and potentially change everything about Tesla’s business model. But how will this affect the company?

Well, by buying an existing auto company, he has immediate access to production processes and infrastructure worth billions of dollars which he would otherwise have to spend years building from scratch.

And by doing this, he will have access to more consumer data, which is essential for increasing sales and growing his customer base as quickly as possible – something that no other electric vehicle maker has been able to do to date.

Moreover, by buying an existing auto company, he gets access to billions of dollars worth of production processes and infrastructure that he’d otherwise have to build himself. The deal gives him access to more consumer data, which is critical for getting sales up and growing his customer base as quickly as possible – something no other electric vehicle maker has been able to accomplish.

There might be a massive change coming for Tesla, and it could change everything we know about cars. Even though people are convinced of Elon’s good intentions with his purchase like SolarCity Corp., as well as numerous other deals in the green energy sector, some are skeptical about how he’ll handle a company like Daimler AG.

So, for both companies, this could mean big things-like making Mercedes products more affordable for America’s middle class while simultaneously pushing Tesla sales higher. Overall, it looks like they’re on their way to changing everything you think you know about sustainable cars.

(Video) JUST HAPPENED! Elon Musk FINALLY SIGNED The Papers To Buy Mercedes!

However, what will happen after Tesla purchases this? Well, first of all, it’s a big risk. You can see what happened when Tesla bought SolarCity-it didn’t go exactly as planned. In addition, by buying Daimler, Tesla would be taking on a lot of debt.

So, investors would think twice about backing an automaker with that much debt without changing its overall business model. Matter of fact, Tesla took a while to become profitable even though Model 3 production exploded in 2018. But if Tesla shareholders stand to make any real money from buying Daimler, it might be worth looking into.

However, as you probably know, Elon Musk is a genius and business mind who has revolutionized every industry he’s entered. But many people are still asking, “What makes him believe that he can purchase Daimler-Benz?”

Well, as mentioned before, Tesla has a market value of $1 Trillion and almost everyone has heard about Tesla – but Volvo and Toyota offer electric cars too. So, it’s also worth noting that 21% of cars sold in America last year weren’t even powered by gasoline. That means Tesla Motors has huge room for growth – they already have a 90% market share in affordable EVs.

When you put it all together, it’s easy to see why Elon thinks buying out these companies will be successful, and it’s pretty obvious. In fact, I do think that once we get into mass production, we’re going to find out just how hard it is to succeed.

However, one more question arises as to why this acquisition is so important to both companies. Well, when you look back at Tesla and its accomplishments over such a short time frame, it really puts things in perspective – especially when it comes to manufacturing technology.

If we look at Tesla’s Gigafactory and Daimler-Benz’s Tuscaloosa factory, there are some big differences there. One thing’s for sure, no matter what you look at, these two factories are just too different in scale and there’s just no comparison.

(Video) Elon Musk NEWS - Has Just SIGNED The Papers To Buy Mercedes

Elon’s goal here, I believe, is not so much to build sustainable cars as it is to make sure that everyone can have access to affordable electric cars. If we had enough time (and money! ), those goals would probably be compatible so I’m excited to see what could happen here…my fingers are crossed!

While many people will try/claim that there are other reasons why neither company will benefit from a merger, I honestly can’t seem to find any solid evidence to prove such a claim.

Anyways, what do you guys think about this? Tell us in the comments.

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Information Source: Youtube/Genius’s Guide

FAQs

Did Elon Musk just buy Twitter? ›

Elon Musk has added Twitter to his long list of companies, which includes Tesla and SpaceX. The billionaire's purchase of Twitter was finalized Thursday, a day before a court-ordered deadline, according to a source close to the deal.

How much of Tesla does Mercedes own? ›

STUTTGART, Germany, and SAN CARLOS, Calif. – Daimler AG has acquired an equity stake of nearly 10 percent of Tesla Motors Inc. This investment deepens the relationship between the inventor of the automobile and the newest member of the global auto industry.

What companies does Elon Musk own? ›

He is the founder, CEO, and chief engineer of SpaceX; angel investor, CEO and product architect of Tesla, Inc.; founder of The Boring Company; co-founder of Neuralink and OpenAI; president of the Musk Foundation; and owner and CEO of Twitter, Inc.

How much does SpaceX own Elon Musk? ›

SpaceX
Headquarters in December 2017; plumes from a flight of a Falcon 9 rocket are visible overhead
RevenueUS$2 billion (2018)
OwnerElon Musk Trust (47.4% equity; 78.3% voting control)
Number of employees12,000 (April 2022)
SubsidiariesSwarm Technologies
11 more rows

What social media did Elon Musk buy? ›

After months of waffling, lawsuits, verbal mudslinging and the near miss of a full blown trial, Elon Musk now owns Twitter. On Thursday night, Mr. Musk closed his $44 billion deal to buy the social media service, said three people with knowledge of the situation.

Why is Elon Musk so rich? ›

Elon Musk rocketed to billionaire status, after entering the elite club in 2012 just nine years later he tops the list. His wealth is based mainly on his shareholdings in the electric car firm Tesla, of which he is the CEO.

Why did Mercedes sell its stake in Tesla? ›

In a statement, Daimler Chief Financial Officer Bodo Uebber said, “We are extremely satisfied with the development of our investment in Tesla, but it is not necessary for our partnership and cooperation. For this reason, we have decided to divest of our shares.”

Is Tesla better than Mercedes-Benz? ›

Tesla delivers sporty performance and software, and Mercedes provides unparalleled comfort and new technology. Ultimately, we think that Mercedes is better suited for car enthusiasts who either want to enjoy the best a gas engine can provide on the road or have a taste for luxury and class.

Do Tesla use Mercedes parts? ›

Welcome to The Parts Department, where we follow basic car components to their strangest destinations. The Model X, you won't be surprised to find, shares many components with its sedan sibling, the Tesla Model S. That's why we see the same Mercedes-sourced steering column stalks and window switchgear in both EVs.

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They drew parallels claiming that the wallet address belongs to Elon Musk, and he owns 2.5 million Dogecoins.

How much does Elon Musk make a hour? ›

This makes it easier to answer the question, how much does Elon Musk make an hour? Since his daily earnings for the first quarter of 2022 are an estimated $333.33 million per day, his hourly rate would be $51.30 million.

What is Elon Musk's IQ? ›

Elon's IQ is estimated to be around 155, while Albert Einstein's is 160. With such a slight margin, Musk is undoubtedly an incredibly smart person. Who is the smartest person on earth in 2022? Born in 1975 in Adelaide, Australia is a mathematician, Terence Tao with an IQ score of 230.

Does Elon still own PayPal? ›

How much did Elon Musk sell PayPal for? In 2002, eBay purchased PayPal for $1.5 billion.

Did Elon Musk grow up rich? ›

Elon Musk was born into a wealthy family in Pretoria, South Africa in 1971. His mother, Maye, is a Canadian dietitian and model, while his father, Errol, is an engineer. While Musk remains close to his mother, his relationship with his father is understood to be strained.

Is Elon Musk the richest man in the world? ›

1. Elon Musk. Image courtesy Getty Images/Saul Martinez.

Who did Elon Musk fire from Twitter today? ›

SAN FRANCISCO (KGO) -- Elon Musk has officially bought Twitter and is now in charge of the company, according to sources. Musk fired CEO Parag Agrawal, CFO Ned Segal and general counsel Sean Edgett, two people familiar with the deal said Thursday night.

Who is Elon Musk wife? ›

Elon Musk

How can I become rich? ›

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  2. Avoid Unnecessary Spending and Debt. Stop buying things you don't need. ...
  3. Save 15% of Your Income—or More. ...
  4. Make More Money. ...
  5. Don't Give in to Lifestyle Inflation. ...
  6. Get Help if You Need It.

What age did Elon Musk become a billionaire? ›

Musk was 41 in 2012 when he became a billionaire, Insider reported.

Why did Tesla partner with Daimler? ›

The deal provides Daimler with batteries and the know-how needed to bring an electric car to market "at the highest possible speed," company officials said. In exchange, Tesla gets a big pile of cash and, perhaps more importantly, the parts and engineering expertise it needs to build the Model S sedan.

Is Daimler still invested in Tesla? ›

Mercedes-maker Daimler, which was an early Tesla investor, is the most prominent example. In April 2010, the German luxury carmaker acquired a 9.1% stake in Tesla at $50 million. The EV maker went public two months later. Daimler sold the stake in 2014.

Did Daimler save Tesla? ›

It was the Daimler investment that saved Tesla, not government money." Tesla did not actually receive any government funds until March 2010. "That was after the crisis had passed," Musk explained. Daimler may have been there when Musk needed it most, but the company sold its stake in Tesla last fall.

Are BMW better than Mercedes? ›

While we have given BMW the slight edge in this guide, ultimately the choice is yours: we think BMW offers a better driving experience and range of models to suit all tastes but at the same time Mercedes offers better driver comfort and technology.

Which electric car is better Tesla or Mercedes? ›

Between the two hybrid choices though, the Mercedes edges the BMW by being that bit more stylish, comfortable and usable on electric power. But for the test as a whole, the Tesla Model 3 is a more balanced car. It's the better one to drive, is more practical and is much less compromised than the BMW and Mercedes.

Is Tesla a luxury brand? ›

Tesla has emerged as the dominant luxury brand in the U.S. But readers often ask: Is it really luxury? First of all: Yes, just look at the prices. But second of all: Yes, it's just a different type of luxury.

Is Mercedes using Tesla batteries? ›

The Mercedes EQG electric model will carry a part of Tesla in its structure, as the battery will be developed by the company Sila Nanotechnologies, founded by a former engineer of the U.S. factory.

What cars share the same parts? ›

10 Most Surprising Examples Of Cars Sharing The Same Parts
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11 Nov 2020

Does Tesla use parts from other cars? ›

Tesla Motors has become known for producing well-designed and innovative electric vehicles. To assemble its cars, Tesla sources parts from a range of Tesla suppliers. Some suppliers provide ordinary car parts, others provide electric vehicle parts. Still, others provide steel, industrial products, and minerals.

› 2018/12/04 › tesla-tsla-valuable-daiml... ›

As we reported last month when Tesla's market capitalization surpassed BMW's, it's hard to directly compare Tesla to other automakers because the co...
German automaker Mercedes-Benz is building a veritable arsenal to challenge Tesla's leadership in high-end electric vehicles.
The car you choose will be determined by your needs and budget. Yes, both cars are expensive, but they share some similarities and differences. If you want a hi...

Who owns Twitter now? ›

Billionaire Elon Musk now owns Twitter after a months-long legal battle. He said a "content moderation council" will meet before deciding to reinstate previously banned people from the platform.

Why did Elon Musk purchase Twitter? ›

Elon Musk's Acquisition of Twitter. A blockbuster deal. In April, Elon Musk made an unsolicited bid worth $44 billion for the social media platform, saying he wanted to turn Twitter into a private company and allow people to speak more freely on the service.

Who owns Twitter? ›

Twitter co-founder Jack Dorsey retained a 2.4% stake in the microblogging site after Elon Musk completed his $44 billion acquisition, according to a new filing with the Securities and Exchange Commission. By the numbers: The filing indicates that Dorsey rolled over some 18 million shares when Twitter became private.

How much did Elon Musk buy Twitter? ›

The deal closed on Thursday, according to a person familiar with the matter who spoke on the condition of anonymity to discuss sensitive matters. Musk bought the social media company for about $44 billion, matching the original price he offered earlier this spring.

How much companies does Elon Musk own? ›

The tech mogul now must divide his attention between five companies spanning transport, neuroscience and social media. Musk runs Tesla and SpaceX alongside two smaller start-ups, Neuralink and The Boring Company. From building rockets and brain chips to digging tunnels, here's what all of Musk's companies do.

What is Elon Musk charging for on Twitter? ›

Elon Musk says he wants to charge $8 a month for Twitter's "blue check" verification badge. Twitter CEO Elon Musk now says he wants to charge users $8 per month to retain their verification badge or obtain one on the platform — after an earlier report suggested he might seek even more for the privilege.

Is Mark Zuckerberg on Twitter? ›

He may be the founder of Facebook, but Mark Zuckerberg does have a Twitter account.

What is Elon Musk's net worth? ›

Who left Twitter after Elon Musk? ›

The move was seen as cementing Mr Musk's control over the company. Among those leaving were chairman Bret Taylor and chief executive Parag Agrawal. Other senior figures have also posted about leaving, or are reported to have left, including chief financial officer Ned Segal. Thursday concluded 5 years @twitter.

What will happen to Twitter after Elon Musk takes over? ›

Twitter will be delisted from the New York Stock Exchange and its shares will no longer trade on public markets as of Nov. 8, according to a securities filing. In September, Twitter's shareholders approved the company's sale to Musk and agreed to sell their stock to him for $54.20 a share.

Does Twitter make money? ›

Twitter divides its revenue into two categories: the sale of advertising services, which constitutes the vast majority of the company's revenue, and data licensing and other services.

Has Twitter ever made a profit? ›

In its sixteen-year history, Twitter has only rarely been profitable. Over the past decade, its core features have barely changed, and its growth has been much slower than that of many competitors.

Who does Elon Musk have kids with? ›

Elon Musk

How much does Elon Musk make a day? ›

This makes it easier to answer the question, how much does Elon Musk make an hour? Since his daily earnings for the first quarter of 2022 are an estimated $333.33 million per day, his hourly rate would be $51.30 million.

Is Elon Musk buying Roblox? ›

Is Musk going to buy Roblox? Musk has expressed no intention of buying Roblox, though Roblox would cost Musk much less than what he offered for Twitter. Twitter would be a much more logical buy for Musk, though.

Did Elon Musk create PayPal? ›

Entrepreneur Elon Musk has achieved global fame as the chief executive (CEO) of electric autos maker Tesla Inc. (TSLA) and CEO of the private space company SpaceX. Musk co-founded PayPal (PYPL), was an early investor in several tech companies, and in October 2022 he completed a deal to take Twitter Inc. private.

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