Should Tesla Ditch EVs To Focus Solely On Batteries?

JUN 13 2014 BY ERIC LOVEDAY 6

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

Categories: Tesla

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6 Comments on "Should Tesla Ditch EVs To Focus Solely On Batteries?"

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Driverguy01

Jeffrey Gundlach is about to hit a wall. He is obviously unaware of Tesla’s adn.:)

Anon

Yeah, what a clueless request / concept.

If other automakers WERE ACTUALLY making 200+ mile range BEVs– there might be some slight bit of merit to the idea. But sadly, no one else currently is…

Priusmaniac

Yes sure, what’s next, making only the carton boxes to put someone else batteries in?

Surya

There is no market for all the batteries the gigafactory will be making, if Tesla doesn’t use them themselves.

Jeff D

With a stupid idea like that, I would not want him managing my bonds. Why would any company stop doing what they are doing successfully in order to solely do something that they don’t know how successful it will be? Tesla didn’t want to comment because they didn’t want to publicly laugh in this guy’s face and basically point out the idea wasn’t worth the time to respond to.

Rick Danger

The Model S has won pretty much every car award there is, and this guy wants them to stop?

WTF is WRONG with people?