BMW Not Interested In Acquiring Tesla Shares

DEC 1 2014 BY ERIC LOVEDAY 34

Tesla Model S & BMW i8

Tesla Model S & BMW i8

BMW Meets Tesla

BMW Meets Tesla

Via a crude Google Translation of an exclusive article in German magazine Wirtschaftswoche , we conclude the following:

  • BMW is not interested in acquiring Tesla shares
  • BMW is only interested in teaming with Tesla on batteries if Tesla presents a breakthrough product
  • BMW does not believe Tesla has any technological advantages it could benefit from
  • BMW doesn’t approve of Tesla CEO Elon Musk throwing out the German automakers name just to drum up more Tesla talk

But wait…there’s more.

BMW officially went on record, releasing this statement:

“The BMW Group has no interest in acquiring shares of Tesla.”

As for BMW & Tesla holding discussions, word is that basically all automakers have “informal” talks from time to time with each other.ย  So, BMW holding informal discussions with Tesla would not even be newsworthy.

On the battery front, BMW admits that it has no interest in manufacturing its own cells, as it sees no advantage in doing so.

“We do not own factory for battery cells.”

BMW views battery cells as an outsourced part, but says it may consider joining with Tesla on the battery front if Tesla presented an actual breakthrough product:

“The joining of the cells to a battery and the control of the battery [would interest BMW if] it was the actual innovative performance.”

Source: Wirtschaftswoche

Categories: BMW, Tesla

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34 Comments on "BMW Not Interested In Acquiring Tesla Shares"

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NewHippy
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Wirtchafts Woche is not a Dutch magazine it is German.

sven
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sven

How do you get “BMW admits that it has no interest in manufacturing its own cells, as it sees no advantage in doing so” from BMW’s statement which said โ€œWe do not own factory for battery cellsโ€?

That’s quite a leap. Am I missing something? Maybe it would help if you posted BMW’s entire statement or at least a link to its statement.

Mike
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Mike

I think its funny too.
Who’s got the High Performance EV with a 300 mile range, and who doesn’t?

David Murray
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David Murray

High performance and long range does not mean better technology. In this case it just means higher cost. Personally, I prefer BMW’s approach of 80-ish miles on battery and a Rex for more range over Tesla’s all-electric approach.

MDEV
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MDEV

The i3 is a Leaf with carbon fiber, the Leaf is a better choice. I crossed shop the 7 series for the Tesla and I won’t go back to old technologies.

JakeY
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JakeY

The i3 has a 230kg 22kWh pack or 95.7Wh/kg at the pack level. Model S has a 600kg 85kWh pack, so 141.7Wh/kg. So Tesla’s pack is drastically more energy dense and not just simply adding a larger pack (as many assume).

Now you can blame/credit the battery cell suppliers (Samsung SDI for BMW and Panasonic for Tesla), but I think Tesla does deserve some credit for their pack design (which while wasn’t “invented” by them, has a lot of patented Tesla optimizations).

Kaiser
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Kaiser

I wonder if BMW was constrained by cost here, or if Tesla’s packs are also significantly cheaper. It’s hard to tell since Tesla is still not GAAP profitable.

kdawg
Guest

Did anyone else internally read the BMW quotes with an angry German accent?

ffbj
Guest
ffbj

You kill me!

JRMW
Guest
JRMW

BMW seems a bit more irked than normal with this mild dust up.

Not the first time that Musk has had to walk back a claim, and won’t be the last. No biggie.

All that said I am sad that BMW and Tesla aren’t partnering. Imagine an AWD i3 with a Tesla battery.
or a model S with CFRP. .
or better yet, a new offering with the best that Tesla and BMW have to offer, in one vehicle.

ffbj
Guest
ffbj

Yes, it seems they protest too loudly.

sven
Guest
sven

Cheer up. At least BMW and Toyota are still partnering up. We can look forward to an EV with the best that BMW and Toyota have to offer, in one vehicle: an i3 with a hydrogen fuel cell Rex! ๐Ÿ˜‰

/s

See Through
Guest

Tesla powertrains have repeated failures. RAV4 had failures cue to those unreliable parts. Mercedes is putting its own money in plug-in hybrids, and so they probably don’t care much about the B class using Tesla powertrain in those.

Priusmaniac
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Priusmaniac

The FUD moment as usual.

ffbj
Guest
ffbj

Bmw is in an uncomfortable position. It’s so high school of them. One the one hand I think they admire Tesla but can’t admit to that admiration, even to themselves, or at least publicly. Tesla is the new cool kid in school, but at the same time an outsider. So Bmw is also threatened by them, so they downplay their interactions as just being matter of course, while at the same time, slighting the new friendship, touted by Musk, as being a mere delusion on Musk’s part.
I don’t buy it.

Andrew Diamond
Guest

Too bad. I was looking forward to supercharging an i3.

MDEV
Guest
MDEV

I’m sorry BMW is so high tech that the supercharges still in development ๐Ÿ˜‰

See Through
Guest

Use the 100KW CCS chargers. They are way cheaper, and pay as you go.

Priusmaniac
Guest
Priusmaniac

In everybody else’s math 135 KW is more than 100 KW. Good FUD try again. Why don’t you go back to your oilies daily favorite news sites?

Phr3d
Guest
Phr3d

Wow! you are Right! Cost effective!
Can you share with us the one that you use?

Bill Howland
Guest
Bill Howland

Actually, Wolf Richter has called Elon Musk the ‘electric car Gas Bag’. hehehe.

BMW was apparently astonished at this free advertising, so much so, that aparently they put a stop to it.

Since all automakers talk to almost all other automakers about various things almost all the time, the “INFORMAL TALKS” are much, much less than they seem.

Musk’s claim to fame will go down in history as holding the world record for increasing the stock price (around $30 Billion capitalization, GM for comparison is $54 B), this is with a worldwide vehicle penetration rate of 0.05%. GM makes one or two more vehicles.

Mr X
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Mr X

I’m German and the way the German article reads is that BMW buys the battery parts from suppliers and builts the battery and control system themselves.

It doesn’t say BMW might be interested in Tesla battery technology as stated in the article on insideevs.com. It actually implies that BMW doesn’t need Tesla to built the batteries and control systems.

Bill Howland
Guest
Bill Howland

Totally agree with X and Rampone here.

If you read the story here in INsideEvs alone, you might go away thinking that BMW was musing about sometime using superior Tesla Technology.

BMW’s release, was much more of a floor slam. Or Door Slam. Stating Tesla flatly has no independly gathered technology which would interest BMW – > BMW specifically designs all their OWN value-added controls and management, and packing of their batteries of which they own all their own patents on.

Rampone
Guest
Rampone

jup, like mr.x german captain here.

Lost in Translation, in the article the last sentence translates as follows:
(not needing a “BMW” battery cell plant,this can be done by suppliers)…
The joining of cells into a battery [module] and the battery managament are done inhouse by BMW, because this is the innovation itself.

Rampone
Guest
Rampone

*flies away* (sorry 9gag damaged ๐Ÿ˜‰

Spec9
Guest
Spec9

“BMW does not believe Tesla has any technological advantages it could benefit from”

Supercharger network. It is not really a technological advantage, but the fact that Tesla has a deployed >100KW charging infrastructure out there is something that BMW could benefit from if they made a large battery car.

Bill Howland
Guest
Bill Howland

Now the SuperCharger facilities now that is very interesting.

Specifically what revenue from all sources can be attributed to the SuperCharger?

I was under the impression that the “Green Car Credits” tesla got from the supercharger, were actually much, much greater, than the $2000 per car option which ostensibly paid for the overall system of chargers, no?

Nix
Guest
Nix

Any company looking to buy lots of stocks in another company Do Not want other investors to think/know they are about to buy lots of shares. It gives other investors the chance to stick their noses in and try to buy up shares to run up the price that BMW would have to pay.

Any stock purchase or stock swap that may someday happen between BMW and Tesla will be announced after it happens, not before. A denial today means nothing tomorrow.

Bill Howland
Guest
Bill Howland
BMW probably isn’t buying many Kumquats either, that’s not the point of the original article. The point is, you can push a competitor or collegue to the point where it is an afront, or an insult. BMW here quite obviously was insulted and they took retaliatory action. They specifically stated they DID NOT like their name being used, obviously Tesla doing so to counter bad momentum from Diamler and Toyota sales of Tesla Stock. Now both companies went out of their way to make the issue go away FOR THEM, stating there will be future arrangements with them, probably along the lines of just as a Steering Wheel switch is made by Diamler, in the future maybe some other part will be sold to Tesla. Same with Toyota.. But since every car manufacturer uses hundreds of suppliers and changes the mix all the time, Diamler’s and TOyota’s press statements re: sale of Tesla Stock is just to make the issue go away, while “privately” pocketing the capital gains. Their publicists apparently want people to think absolutely nothing and changed and to ignore it. Which they were right about since everyone did. THe fact the press are making Jokes about Elon… Read more »