Musk Plans Tesla Patent Move After Hint of Sharing With Rivals

One week after Chief Executive Officer Elon Musk hinted at sharing Tesla Motors Inc. (TSLA) patents to encourage other carmakers to embrace electric vehicles, the billionaire suggested an announcement is on the way.

“Some news about Tesla patents tmrw at 10am,” Musk wrote in a posting on his Twitter feed, without providing more details on the time zone or subject matter. After saying he was surprised how few carmakers make “serious electric vehicles” at Tesla’s June 3 annual meeting, the CEO said he was “planning on doing something fairly significant on that front, which would be kind of controversial with respect to Tesla’s patents.”

Tesla plans to boost deliveries of its $71,000 Model S sedan by more than 56 percent this year by expanding sales to China and other international markets. Musk has said the Palo Alto, California-based company’s goal of selling lower-priced electric cars within the next three years depends on opening a battery “gigafactory” to relieve production constraints.

Musk, 42, already has collaborated with other carmakers to bring electric cars to market. Tesla has supplied battery packs to Toyota Motor Corp. (7203) and Daimler AG, both of which hold stakes in the electric-car company.

Tesla, which saw its stock climb fourfold last year, rose 1.1 percent to $204.47 at the close yesterday in New York. The shares have gained 36 percent this year.

To contact the reporter on this story: Craig Trudell in Tokyo at ctrudell1@bloomberg.net

To contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net Greg Ahlstrand, Garry Smith

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.