Elon Musk, the CEO of electric car maker Tesla, said on Monday that he would be willing to invest $100 million to $200 million to buy the rival fleet-sharing firm Otto in order to fight rival Lyft.
“It’s very difficult for me to do something like that because I have such a large position,” Musk told CNBC’s “Squawk Box.”
“But if I were a buyer, I would buy them all.”
Musk’s comments came after a day of speculation about what he might do to combat Lyft, which has been the No. 2 competitor in the U.S. in fleet-share agreements since its launch in January, according to The Wall Street Journal.
The company announced plans to add 20 new vehicles in 2019, with the goal of becoming the largest car-sharing company in the world.
Musk has been vocal about the potential for his company to disrupt Lyft, saying in an interview with CNBC in November that he hoped the company would eventually “have to compete with Uber and Lyft.”
In response to a question about potential purchases, Musk said he would prefer to buy Otto because he believes they have a “better chance of competing against Uber.”
Musk said the company has “the right technology, the right engineering, and the right infrastructure” and that he “would be willing” to invest money to acquire the company, which competes with Lyft in the fleet-shelter market.
“I am not trying to get rid of Lyft, I’m just saying I don’t want to compete against Lyft,” Musk said.
“I would rather have an agreement with Otto that was better than Lyft.
That’s my preference.”
In the interview, Musk also suggested that the company might make an acquisition of Uber or another competitor to disrupt the current fleet-sharing model.
In the past year, Uber has made acquisitions of several smaller rival firms in an effort to compete more aggressively against the major companies, including Waymo, which recently announced plans for a $1.5 billion acquisition of Otto.
Musk said the current system is “broken” and he would like to change it in order for the companies to “just compete more competently.”
“It would be great to have a situation where we just get rid [of] the existing agreements and just buy everybody else,” Musk added.
“It’s going to be a very tough situation to compete in.”
Tesla is currently valued at more than $70 billion, and Musk has said that the goal is to have an annual revenue of $10 billion, according the WSJ.
Musks comments on Otto came on the heels of reports in The Wall St. Journal and CNBC that the ride-hailing company is seeking to acquire Otto.
A source familiar with the company told The Wall Hill on Monday, “Tesla has not made any formal offer to buy any of Otto’s businesses.
We do not believe that is a reasonable course of action.”
Uber acquired Otto in January and plans to buy it out as well.
The company has not commented on Musk’s comments, though the Wall Street J reported on Sunday that Uber has reached out to Otto in recent days to discuss buying the company.
Lyft also has been in the news this week, as the company announced that it would begin testing self-driving cars in San Francisco’s Mission Bay neighborhood on Sunday, according Bloomberg.
In response, Uber CEO Travis Kalanick said that he believes it’s “time to rethink our thinking about what is and isn’t acceptable in the automotive space.”
Lyft has a market cap of $75 billion, with an estimated 10 million vehicles in operation worldwide, according Forbes.
Uber, meanwhile, has a $38 billion market cap, with a market capitalization of $74.7 billion.