Tesla Motors has established a strong, if not invincible foothold in the industry, and the prospect of it being purchased by the likes of General Motors in 2014 is being floated.
This news came by way of the highly regarded trader for Praxis Trading, Yra Harris, who aired the proposition on CNBC, saying he can see the tie-up taking place in the next 12 months.
In previous interviews, Tesla CEO Elon Musk has not said “never” to a potential buyout one day, but he’s indicated he has more goals to personally see through at this stage.
In a write-up on the notion being bandied about by outsiders just the same, USA Today noted Tesla’s lower share price after a recent stock market haircut “could make it a target.”
A question arises, Harris said, whether Elon is indeed ready to move on.
Also thrown in for good measure is GM has had marginal success with the Volt, other electrified efforts, and buying a nice new darling of the green car space could be beneficial.
If such a thing happened, the speculation from Harris continues that it would be best to let Tesla keep running on its present course.
Tesla’s market cap is nonetheless still selling at 100-plus times forward estimated earnings, so, as USA Today noted also, in question is whether Tesla could really be purchased at an advantageous price.
What’s more, GM has expressed admiration for Tesla, but for its part has suggested it could beat Tesla with resources it has in the next three or more years.
Consulting an analyst ourselves, we asked Alan Baum in Michigan who confirmed talk has circulated of an acquisition, including by some who wonder if Toyota or Daimler would step up, being they have a stake already.
If something “bad” happened to Tesla – more than a couple U.S. fires and a present federal investigation that clipped Tesla’s market cap by over 20 percent recently – then perhaps an opportunist could think to make a move – or so goes the scuttlebutt.
But even this is not so likely, says Baum, who sees Tesla remaining its own entity until further verifiable notice.
So until then, potential matrimony between Tesla Motors and General Motors is nothing but speculation – and news, because someone on TV said it could happen.