There's little question that Tesla has come at the automotive industry as an outsider. But will it last as an outsider for much longer? Not if you ask Yra Harris of Praxis Trading. According to USA Today, the veteran financial analyst recently predicted on CNBC that General Motors will try to buy Tesla in 2014.

It certainly wouldn't be the first time that GM acquired another automaker. It did just that when it purchased the rights to the Hummer brand from AM General in 1999 and completed its takeover of Saab the year after. But, of course, The General has since divested from both, shutting down its Pontiac and Saturn brands in the process. Daewoo and Oldsmobile are gone too, as is Geo. Chevrolet is to be withdrawn from Europe, and over the past few years, GM has sold its minority stake in Isuzu, Subaru, Suzuki and PSA Peugeot-Citroën as well.

Of course, none of these are dedicated electric carmakers like Tesla is, and the Volt may not be doing as well as Detroit had initially hoped. But does that mean it's ready to start expanding its brand portfolio again? With all due respect to Mr. Harris, somehow we doubt it – especially with Tesla currently enjoying sky-high market valuation. The company's market capitalization stands at over $18 billion – more than 100-plus times its earnings. That would make mounting a Tesla takeover a hugely risky and costly endeavor unless Wall Street tempers its stock value greatly.


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  • 206 Comments
      Weapon
      • 11 Months Ago
      Neither Musk nor Tesla investors will allow it.
        Dean Hammond
        • 11 Months Ago
        @Weapon
        wrong....I called this from the get go...Elon will fill his pockets again, hes a business man, nothing more nothing else, and all the GOVT incentives are finite....this doesnt surprize me in the slightest, sadly its GM not Mercedes or Toyota or Ford..I STILL question some of GMs business practices and decisions, they could ruin Tesla for sure....
          Dean Hammond
          • 11 Months Ago
          @Dean Hammond
          you Tesla guys are SOOOOO sensitive to anything that wavers from the yellow brick road, funny really how anti reality some loyalist remain....its a business, its not some guy just catering to dreamers wishlists out of his own passion...get over it.
          Dean Hammond
          • 11 Months Ago
          @Dean Hammond
          rest my case, touchy touchy touchy....
          Michael
          • 11 Months Ago
          @Dean Hammond
          First off this is just one analyst's opinion, and they're wrong more than they are right. Secondly, Tesla doesn't need the government incentives anymore to sell their automobiles, they have the Apple cool factor. Thirdly, since none of the other auto companies can meet the government standards Tesla will continue to sell their excess ZEV credits for the next 5 years, see Mercedes. Lastly, if Tesla is acquired by another company it could be any of the big guys, Toyota, Ford, VW, GM, etc. They all have enough market value to do the deal if the preferred stockholders in Tesla want some price stability in their holdings.
        Rochester
        • 11 Months Ago
        @Weapon
        Musk would allow it if it enabled him to do something else... like get himself to the moon and back.
          Dean Hammond
          • 11 Months Ago
          @Rochester
          Grendal...i take a lot Elon says with a grain of salt...he WILL sell eventually, theres no doubt in my mind, but he keeps the stock relatively stable by saying he wont, hes a clever dude, but for the right $ he will let tesla go....I can only hope it ISNT GM
      JustinJQ
      • 11 Months Ago
      Never going to happen.
      richard
      • 11 Months Ago
      GM already has their own electric program, and with an even more advanced (and cheaper) Volt on the way, they don`t need Tesla.
        brandon
        • 11 Months Ago
        @richard
        More advanced. LMAO.
        CoolWaters
        • 11 Months Ago
        @richard
        The Volt 2.0 will be big competition for Tesla.
        Uhwhat?
        • 11 Months Ago
        @richard
        This is just speculation so far on your part and the part of industry analysts. However, the facts are that tesla is working with several battery developers and continuously upgrading the range/capacity of their battery technology. GM is (again) too focused on profit margins and reducing costs of development, thus starving the product of the "nutrients" required to be a TRULY viable product in the grand scheme of things. Tesla is able to maneuver much more effectively due to its size and number of product offerings. They only have one type of drivetrain while GM has well over a dozen. Therefore, any innovative idea that they bring to the table, quickly cross pollinates to their other product offerings. GM can NEVER do that. Even if they could they aren't sharp enough to notice the window of opportunity.
      Kyle
      • 11 Months Ago
      analyst, you're drunk, go home
      Greg Glockner
      • 11 Months Ago
      I'd like to try what this analyst is smoking.
      Dave
      • 11 Months Ago
      The Analyst must know nothing about the industry. Aside from the issue that both Mercedes and Toyota already have stakes in Tesla, with the big car companies trading as low as $15 per share, there is a HUGE potential downside to Tesla. Way too much risk for a publicly traded company to buy them outright. I would think thats why Mercedes and Toyota took a steak in Tesla rather than scooping them up.
      Rochester
      • 11 Months Ago
      Too soon for GM, all things considered. As analogies go, it's like Budweiser trying to buy up most of the wineries in Napa Valley. Everyone wins... except people with good taste.
        Michael
        • 11 Months Ago
        @Rochester
        Tell that to K-Mart, as soon as they got out of bankruptcy, they turned around and bought Sears.
      Dump
      • 11 Months Ago
      Here's a novel idea....why don't these large corporate giants stop buying other companies & just compete. These recent corporate mergers & acquisitions seem to have been their excuse not to use the existing resources they have to develop competitive products or services that they public/market really want. It's been easy to just buy what's "hot" now. But then when the trends shift or evolve, the corporate parent usually doesnt know what to do or how to navigate through the BS to shift into what's new or "hot" again.
        blondorican
        • 11 Months Ago
        @Dump
        Because...'Murika! We do what's right for majority shareholders and CEO's here in the great red white and blue. Never mind however many lower middle class, starving kids, uneducated and sick whose necks we step on. Cause I mean...CEOs NEED to make millions and stuff...cause that's exactly why they took the job, to be filthy to rich and screw the little guy. So working America stays poor and class division becomes more and more radical. Good stuff.
        jebibudala
        • 11 Months Ago
        @Dump
        Did you say murders and executions?
      ecdrumguy37
      • 11 Months Ago
      please don't sell
      AudiA4
      • 11 Months Ago
      It stands to reason that Tesla would be an acquisition target. If that's the case, I'd hope the buyer were American (as opposed to Toyota or Mercedes). Someone also postulated Apple might acquire them. As wild as that would be, it would be a better fit for both companies.
        Weapon
        • 11 Months Ago
        @AudiA4
        Tesla is not going to be an acquisition target. None of the car makers can afford Tesla and Musk is not going to sell.
          Dean Hammond
          • 11 Months Ago
          @Weapon
          yeah, because this is nothing more than Elons passion right?....hes only in it to improve the world as we know it....ahem.....hes a VERY astute business man...nothing more nothing less....course the Tesla groupies probably think hes in it for the love of it, sorry, that's sadly mistaken.....sorry Weapon, but that's reality....that and I dont think Teslla can survive on its own Laurels, they need the financial stabilty and depth of a major player to stay alive.....those MASSIVE EV credits are going away, then what?...raise the price $20-30k?....
          Go2Fast
          • 11 Months Ago
          @Weapon
          I agree, I just can't see Musk doing that. He isn't done with Tesla, and has plenty of vision left. It would make more sense for the two automakers to share technology, but I don't think Elon would do that either.
        JustinJQ
        • 11 Months Ago
        @AudiA4
        If Apple acquired Tesla, the prices would instantly double and the manufacturing would transfer to China.
      PeterScott
      • 11 Months Ago
      This is absolute nonsense, of course. Analyst? more like professional Troll. Trolling works. Post sensible, realistic analysis and it will get no attention. Post BS troll stories and you are a hot commodity. That is the sad reality of the net-world.
        Marcopolo
        • 11 Months Ago
        @PeterScott
        @ PeterScott Well observed ! While Yra Harris may not be a professional troll, he certainly falls into the category of someone seeking attention, for attention's sake !
      Teleny411
      • 11 Months Ago
      I don't see this as being a good move for either country.
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