Tesla Motors Inc (TSLA) Takeover or Big Partnership

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January 6, 2014 1:59pm NYSE:GEX

deal handshakeLooking in the rearview mirror for too long and not concentrating on the road ahead is dangerous for drivers. That same logic hold true when considering investing for the long-term, namely because past performance is not indicative of future results.


Therefore any potential suitor for Tesla Motors Inc (NASDAQ:TSLA) should focus on how this still very young company can develop its battery technology.

Recent market rumors have suggested Ford (NYSE: F) or General Motors (NYSE: GM  ) could look to acquire Tesla, but while there can be a case for both companies to make such a move, the valuation of Tesla’s stock close to $19 billion may impede any real internal M&A discussions despite Ford’s $26 billion cash hoard and concern for challenging hybrid sales and, in GM’s case, a 3% year-over-year decline in sales volume for the Chevy Volt. However, recent headlines regarding fire-related problems for the Model S may have Elon Musk more willing than ever to still get out while the getting is good so he can concentrate on Space X, SolarCity, Hyperloop, or whatever comes next.

Watch the video below for more details on the subject:

Related: Complete List Of ETFs That Hold Tesla Motors (TSLA)


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