Cabinet of CTVNews.ca
Posted on Sunday, December 9, 2018 11:49 PM EST
Last Updated on Sunday, December 9, 2018 12:50 PM EST
Elon Mask says he can buy General Motors factories soon and start mounting Teslas in them.
Musk commented in an interview for the 60-minute CBS interview, saying he may be interested in buying some of the five facilities GM plans to stop using by the end of 2019.
A controversial figure known for making strange statements, however, musk can be serious about research of interest in GM factories, according to an analyst.
"It's always difficult to say to Elon," he says. "Sometimes he rages the cuff, and sometimes he has a really cautious strategy behind it," said Militon Call, a Strategic Management Professor at the University of Toronto, Rothman School of Management.
In this case, Mitchell said, there may be seriousness for Mask's claims, since Tesla delivers more vehicles than they once have and close to the production boundaries in its existing California plant.
"There is a pent-up demand for Teslas and electric vehicles in general. They will need more production capacity," he said.
One of the five facilities intended for closure by GM is the assembly plant in Oshawa, Ont.
Mitchell said there was a "very low" chance Oshawa to be one of Tesla's expansion goals, given the difficulties of cross-border production and other issues.
"It's a huge factory. They are not yet ready to go on that production scale," he said.
"Never say never, but it's unlikely."
Additionally, Mitchell said the Oshawa plant will need to be significantly restructured to produce electric vehicles. GM cited the company's complete move to electric vehicles as one of the reasons it left Oshawa.
It is estimated that about 2,500 jobs will be lost in Oshawa when GM stops working in that city.