Two Gigafactory Sites Will Be Developed In Parallel To Avoid Unforeseen Delays

Two Gigafactory Sites Will Be Developed In Parallel To Avoid Unforeseen Delays

Giga Factory Graphic

Giga Factory Graphic

Bond manager Jeffrey Gundlach is trying to organize a meeting with Tesla CEO Elon Musk.  Gundlach says this meeting will have a clear-cut idea in which the bond manager pitches to Musk why Tesla should exit the business of making automobiles.

Quoting Bloomberg:

"Gundlach said he’s been trying to get together with Musk, a fellow Southern California resident, to persuade him to cut a deal with competitors in which Tesla would stop making cars and instead supply automakers’ batteries."

"Tesla “could be wildly transformational the way electricity and electromagnets were,” the 54-year-old founder of DoubleLine Capital LP said in an interview with Matthew Winkler, editor-in-chief of Bloomberg News."

Bloomberg reached out to Tesla for comment on the idea present by Gundlach.  Simon Sproule, a spokesman for Tesla, declined to comment.

We don't think Tesla will exit the car making business, but with the giga factory coming online in a few years, we're rather certain Tesla will turn more to supplying other automakers with batteries.  In this way, Tesla will expand its portfolio.  Sort of a best of both worlds scenario.  Tesla, as a company, will certainly be more than just an automaker in the future, but Tesla will always be an automaker first.  Everything else Tesla does will be secondary.

Source: Bloomberg