What Elon Musk Just Did With General Motors Shocked The Entire World! Take The First Look:- There are two things about the richest man on Earth, Elon Musk, that we’ve come to know over the years.
First, he invents and develops technologies and services that change the shape of the present and future; Second, he loves to prove a point, as we’ve all seen with his acquisition of Twitter and its aftermath.
Elon wants to buy another leading company, General Motors, with whom Musk’s Tesla is already head to head. So what is the deal here? Whether or not the GM is in trouble?
With electric vehicles and self-driving cars, GM hopes to change the world. It intends to create a world where only EVs and SUVs, or EVS, are feasible and accessible to all, but this is easier said than done. They will need the fortune to double the company’s investment to make this a reality.
They announced the discontinuation of the Chevy Volt and plans to close a few factories and lay off thousands of workers. GM has clarified that the company intends to prioritize trucks, SUVs, and crossovers over mundane cars.
In addition, they have stated that they intend to prioritize their focus on battery-electric architecture, which is the future of the automobile industry.
As the company streamlines its current vehicle portfolio, five vehicle designs are expected to account for more than 75 percent of the global sales volume of GM.
GM faces several backlashes. Following the announcement of this decision, legislators, labor groups, and residents of the region who rely on the factories for employment expressed their displeasure and concern about the plan.
They expressed displeasure with GM’s decision to close operations in several countries, displacing many workers. Some argue that GM’s move is necessary for a long-term enterprise as it grapples with shifting consumer preferences and cutting-edge technology.
However, some view the firm’s initiative as insensitive. Musk is already well-known for his sympathetic nature and philanthropic outlook.
As a result, he had to intervene in this scenario, as many jobs are lost when global inflation is already at an all-time high. While we appreciate GM’s approach to thinking about the future, the company’s current action is very hazy.
This plant closure provides Tesla with an excellent opportunity to expand its Horizon. A few years ago, GM Korea and the union agreed to freeze employee salaries and reduce benefits to keep the automaker afloat.
According to the agreement, the company canceled its plan to file for bankruptcy but pushed to close production lines in Gunsan.
GM Korea is the country’s fourth-largest automaker by domestic sales, trailing Hyundai Motor, Kia Motors, and Ssangyong Motor. However, according to data from the Korea Automobile Manufacturers Association, GM Korea’s sales in South Korea fell 35.3% that year.
Tesla comes to the rescue. Elon Musk stepped up and changed the game now that GM has announced plans to close the factories. First, in an interview, he stated that he might consider purchasing one of the factories in Ohio.
Then, in another interview, Musk stated unequivocally that he would take over those factories. If GM decides to sell the plant, Tesla will express interest; otherwise, it will acquire it.
However, this plan will be implemented next year when the plant’s vehicle allocation is exhausted. People, however, were not taken aback by the news. This is not the first time ever that Tesla has decided to assume control of the plan.
Previously, Tesla had taken over the plants. In 2010, it purchased a new one in California owned by GM and Toyota. Tesla later purchased it for 42 million dollars shortly after it was closed.
After the takeover, Tesla expanded the workforce and, after eight years, completely transformed the plant’s image. As a result, the company had far more employees than the previous Factory.
It increased the annual production of electric vehicles by 300,000 units. In addition, Tesla’s plan to take over an existing plant rather than build a new one from the ground up was a huge success.
It not only saved the company time, but it also increased customer trust by increasing the employment rate. GM halts advertising on Twitter. General Motors stopped its Twitter advertising after Elon Musk purchased the social networking site.
The company has even issued a final statement on CNBC, stating that it paused advertising after Twitter revealed the new terms and conditions. GM stated that while it would continue to use the platform to communicate with customers, it would no longer pay for advertisements.
They are in contact with Twitter to learn more about their plans for the service under their new leadership. As a result, they have temporarily suspended their sponsored advertising, as is customary when a major shift in a media platform occurs.
Still, they will continue to use Twitter for customer service contacts, the company wrote in an email. GM was one of the first companies to announce plans to invest billions of dollars in EV manufacturing to compete with Tesla.
However, the problem continued as another company violated Twitter’s terms and conditions. One of Ford Motors’ spokespersons revealed that the company has stopped advertising on Twitter.
They will not continue the deals either because a private deal is required. The rivalry between the two companies is more than just a Twitter deal. Tesla Vs.
GM Tesla currently dominates the EV market, but analysts believe that if GM can jumpstart EV sales, it will overtake Tesla by the end of the decade. Despite being an EV company, Tesla performs poorly on ESG (environmental, social, and governance) metrics, while GM ranks first among automakers.
GM can scale without price gouging, which builds consumer trust, but Tesla does not currently have. Without a doubt, Tesla dominates the electric vehicle (EV) market.
But will Tesla be able to maintain its market dominance? Or will it succumb to the 100-year-old auto giant, GM? EVs currently account for less than 10% of all vehicle sales. However, President Biden established a national goal in 2021 to increase EV sales to more than 50% of total sales by 2030.
While many auto executives believed this was an attainable goal, industry analysts are less optimistic. Regardless, this industry will expand significantly over the next eight years.
Currently, Tesla has 66% of the EV market share, while GM has only 6%, trailing both Ford and Volkswagen. However, this is expected to change.
LMC Automotive predicts that by 2030, GM will outperform all other EV manufacturers, with 18.3% of the market share, leaving Tesla in the dust with only 11.2%, followed by Volkswagen and Ford.
Why? GM has a size advantage over Tesla. Furthermore, they have an established platform, as opposed to converting gas-guzzling vehicles into EVs with a battery slapped on. GM has been working on a platform called Ultium that centers EV systems and integrates batteries directly into the vehicle frame.
With a system in place, production is expected to ramp up faster and more smoothly than in the past. Despite producing only EVs, Tesla cannot produce vehicles on this scale due to a lack of pre-existing manufacturing infrastructure.
Will Tesla acquire the GM factories? Musk and GM have been at odds for a long time due to current issues. As a result, Musk will likely buy the plants to prove a point.
If there is one thing Musk does well, it is to surprise us, but even if Elon Musk takes over the plants, he will come up with solid arguments to back up his position. Elon Musk revealed everything in an interview with Leslie Stahl.
Despite their differences, he stated that he supports the vision of rival automaker GM and that he would always support the idea of increasing investments in electric vehicles.
After all, it was Tesla’s sole purpose. Musk stated that he has always wanted to accelerate the development of electric vehicles in environmentally friendly transportation.
In addition, he had always desired to defend humanity at any cost. Aside from Musk’s concerns for humanity, we are confident that taking over the factory will benefit Musk personally. Like, he can begin early production of EVs. So let’s see what Musk eventually does.
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