Rumor

GM to Buy Tesla in 2014?

Or is this rumor just a wind up?

Not long after the Tesla Model S hit the market, the now outgoing GM CEO Dan Akerson commissioned a study on the EV automaker. Amongst other things, he wanted to know how the hell Tesla managed to accomplish what his company couldn’t: develop and successfully launch a pure EV that can function like a typical car. The Model S literally upstaged the Chevy Volt. What’s more, the former has been universally praised and even scored a top crash test rating from the NHTSA.

However, a new report is claiming that Tesla could become an acquisition target for GM in 2014 due to its advances in technology, service and luxury. CNBC also points out that Tesla holds a market capitalization of over $18 billion, and market shares are trading at 100-plus times forward earnings. Even with an investigation regarding battery fires, Tesla’s still kept its five-star crash test rating, a fact that sent Tesla stock soaring. All of that combined makes the company an attractive buy. The big question, however, is whether Tesla CEO Elon Musk is willing to sell.

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