VW Group thinking about Tesla stake?

Volkswagen Group CEO Herbert Diess was reported Thursday by Germany’s Supervisor Magazin to have expressed an curiosity in buying a stake in Tesla.

Nonetheless, a spokesman for the automaker denied the report back to CNBC, calling it “unfounded.”

Diess has lengthy been a proponent of Tesla. It is rumored he recommended shopping for the corporate to the VW board shortly after being named CEO in 2018, however was knocked again as a result of Tesla was too costly.

Tesla’s share worth again then was about $300, although the worth has since dropped to $225 on the time of writing.

Herbert Diess

In line with the Supervisor Magazin report, Tesla continues to be too costly for VW to purchase outright, despite the fact that the German auto large has the funds. Another could possibly be shopping for a stake.

The place VW can profit essentially the most is from Tesla’s battery and software program builders, the report mentioned.

It isn’t the primary time VW has been linked with Tesla. Final August, it was reported that VW along with a non-public fairness agency made a proposal for Tesla however the deal was knocked again by Tesla CEO Elon Musk as a result of it might have required relinquishing some management within the firm. Since then, VW has fashioned a deep alliance with Ford that may see the 2 share platforms, manufacturing amenities and self-driving automotive tech, although the 2 do not plan to buy fairness in one another.

Ought to VW find yourself with a stake in Tesla, it would not be the primary automaker to take action. Each Toyota and Daimler had been early buyers in Tesla however divested once they determined to develop their very own electrical vehicles.