December 30, 2013
One analyst thinks General Motors has an appetite for Tesla in 2014
As Tesla market capitalization currently sits at $18 billion (USD), some analysts are speculating a correction in stock prices for the EV maker could spark a purchase by one of the Big 3 in Detroit. One analyst, Yra Harris of Traxis Trading, believes General Motors would be the most likely suitor for the Silicon Valley based automaker, USA Today reports.
Reasons for a purchase would likely include access to Tesla’s technology and brand. If General Motors were to acquire the company built by Elon Musk, it would also put the former NUMMI facility in California back in the hands of the General.
But, many believe the company to be overvalued on the market. Shares are currently trading “at a hefty 100-plus times forward earnings,” says USA Today, and a correction in share prices would be needed in order for a full on purchase of the EV maker to be viable.
Tesla CEO, Elon Musk, has also stated in the past he would not be interested in selling the automaker in its entirely until third-generation models came to fruition.