Published on July 9th, 2013 | by Christopher DeMorro
Google Eyeing Tesla Takeover?
With shares of Telsa Motors trading at over $120 each, Tesla Model S production reaching full capacity, and demand outside of the U.S. growing even stronger, things are looking mighty good for CEO Elon Musk. With Tesla Motors doing so well it begs the question; is Tesla ripe for a takeover by another tech company like say, Google?
That has been the scuttlebutt as of late, with investors and Silicon Valley experts wondering aloud if Tesla isn’t being courted by big-name tech companies. Google is the first name that seems to crop up, though Apple has also been suggested as well. With Tesla “paying off” it’s DOE-backed green loan, the electric automaker is a much more tempting target for a friendly takeover.
Despite having just started production of its first mass-market model, Tesla is valued at around $12 billion as the current darling of Wall Street. Google, with over $50 billion of cash on hand, has invested quite heavily into automotive technologies as of late, including autonomous cars. The tech giant has also invested in other green energy projects in the past, though getting into the auto industry is an entirely different beast.
Still, a Google-backed Tesla could truly redefine the auto industry in the 21st century thanks to both their unique product and a sales system that gives it a distinct advantage (and enjoys huge popular support) over the traditional dealership model. Will Tesla end up in Google’s pocket?