www.therichest.com

Elon Musk's Tesla Might Buy Up Closing General Motors Plants [Rumor]

Elon Musk, The Tesla Chief Executive Officer (CEO) might go ahead and buy the idle General Motors plants after GM CEO Mary Barra revealed plans to close five factories in North America and put around 14,700 people out of work.

As reported by the Financial Post, Barra is apparently under pressure to keep the facilities open and what Musk just said could be the thing that does it. If Tesla does buy up those factories and then put them to use, the bottom line would be more competition for GM since Tesla would look like it's expanding. There would also be the benefit of the company having another location to act as an assembly line. Currently, Tesla has a sole auto plant in California that produces the Model S, Model X, and Model 3 vehicles.

Since there are a few vehicles that don't have assigned factories as of yet, it's safe to assume that the bought up factories will be starting production on them. Those vehicles are the Model Y, Tesla Semi, Tesla Pickup truck, and next-gen Roadster.

RELATED: TESLA'S NEW PICKUP TRUCK LOOKS STRAIGHT OUT OF A SCI-FI MOVIE

Via Tesla

Elon Musk could be onto something with this idea because the last time that a similar situation happened, it kind of worked out well, at least for Tesla. According to electrek, in 2010, Tesla bought a factory known as NUMMI, owned by General Motors and Toyota jointly in Fremont California for $42 million.

Over time, the electric vehicle manufacturer rebuilt the workforce there and now has more workers than the original plant. It also produces the vehicles at a rate of 300,000 per year. This is important because, in the long run, it has the possibility of saving the company a lot of money. The other option would be the build another plant, which requires, time spent on planning, budget allocation to the project and then the actual time spent on building it. When compared to just buying up a closed plant from another company, the option turns out to be clear since it might be cheaper and already set up to start production.

This is finally some good information surrounding Tesla since the company was recently called out for having tough working conditions, injuries, and more.

Whatever the case may be, it could be seen as a sign of incoming relief since General Motors is talking about putting some people out of jobs, which never sounds good to anyone that hears it.

NEXT: ELON MUSK WANTS TESLAS TO HAVE 'DOG MODE' TO KEEP DOGS COOL IN CARS DURING THE SUMMER

WhatsApp Urges Users To Update The App In Light Of Recent Security Breach

More in Things