Will Mercedes Merge with Tesla?

Reuters has chosen Daimler as the perfect candidate to join the Californian company representing only about 0.8% of the global automotive market.

According to the latest Reuters study, the Daimler conglomerate, which owns prestigious brands such as Mercedes-Benz, Mercedes-AM, Maybach, and Smart, among others, would be the best dance partner for Elon Musk’s company.

The reason argued by the news agency is based on the type of client of both brands. Those of the German giant and those of the Californian brand have many common characteristics since Tesla buyers have similar aspirations and affinities to traditional luxury car brands.

The Daimler option is much more affordable than, for example, the BMW alternative. The other major German premium carmaker has a more complicated corporate architecture than its three-pointed star rival.

In its report, Reuters analyzes that the acquisition of Daimler for Tesla would help the American electric car firm increase global car production by four. Also, the position of the Germans in China and Europe would boost the electricity offensive in these markets.

The study rules out any Japanese company since experience shows the difficulties and rigidities that this would entail, so the Daimler option scores the analysis.

Daimler is also a good alternative due to a stock price that has failed to outperform the benchmark STOXX Europe 600 Auto Index in the last five years.

While speculations continue, Daimler announced this week an investment of 70 billion euros for 2021-2025. Since Stuttgart, the Supervisory Board of Daimler AG has given its full support to its new strategic course for the first half of the 1920s.

To achieve the profitability envisaged by the management leadership, a series of measures have been put in place together with an investment plan for the company’s transformation towards electrification and digitization.

The German conglomerate’s value on the stock market is 74 billion dollars, while Tesla and its 0.8% share at the global level reach a whopping 540 billion dollars in the markets.

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