(Fox News) — Tesla’s CEO and founder Elon Musk has spent five years building the $5 billion company into a high-profile tech company with a huge focus on green energy and electric cars.
Now Tesla is expected to launch a $1 billion deal to buy into internet-connected drug company Lucid Motors.
Lucid has technology that allows drivers to stream music from their phones and use navigation to keep themselves from getting lost, but there are “technical issues” that need to be worked out before it’s launched, according to sources familiar with the transaction. But Musk will still provide $300 million of his own money for the deal.
“He personally sees a clear technology fit between Lucid’s advanced wireless operations and the advanced cellular infrastructure necessary to deliver this kind of intelligent driving experience. We look forward to working with him,” Lucid says in a statement.
The overall effort is aimed at helping get electric cars to the masses. But Musk has said there are hurdles and he doesn’t think Tesla will be able to make profit on an electric car until 2025.
When Tesla went public, Musk talked about how he wanted to build a rocket that would blast humans into space, ultimately landing on Mars. Musk’s SpaceX already has two successful launches in space and is going after an even bigger goal: creating a Mars colony.
But with Tesla’s stock price down this year, and far from its all-time high, Musk has been looking for more ways to make his company more profitable, like this latest investment.
Lucid Motors is developing a car that will look like a typical sedans on the outside, but has a cutting-edge electric motor on the inside that moves through the car with the grace of an Olympic speed skater. It’s a concept car, not quite ready for production.
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