Should FCA team up with Tesla?

He might have put a car into space, and by his own words is currently ‘working on a cyborg dragon’ but aside from his publicity stunts, it seem’s Elon Musk’s electric car operation is in trouble, some industry analyists saying Tesla could run out of money before the end of 2018.

By comparison the FCA Group posted its first-quarter earnings last week. It raked in over $30 billion worldwide and made almost $1.5 billion in North America alone. It was the latest in a long string of profitable quarters. So could FCA be tempted to team up with Tesla?

It has been widely known for a while that FCA CEO Sergio Marchionne has been on the lookout for partners, and after original skepticism about the electric vehicle market, FCA now need’s to play catch up, certainly teaming up with Tesla would make this possible.

Having spun off Ferrari successfully, Marchionne will set out the group’s next 5 year plan in June, might this include another of the Italian car makers following Ferrari? Certainly bringing electric into the FCA Group’s range, whether it with Maserati or Alfa Romeo would strengthen it in an every changing car market, with Tesla’s technological know how it could quite literally jump to the head of the class.

FCA ended 2017 with about $13 billion in cash, so it wouldn’t have to merge with Tesla; rather, it could contrive an alliance that would enable FCA to give Tesla the multiyear buffer it needs to concentrate on growing revenue and production without worrying about running out of money every 12 months. And FCA could provide Tesla with the manufacturing footprint and expertise the California carmaker badly needs.

It is on the face of it unlikely to happen, but in business it seem’s anything is possible…

*Courtesy businessfinder

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