Repayment of U.S. DoE Loan Puts Tesla (TSLA) in Takeover Spotlight (F) (GM)
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Is a Tesla Motors, Inc. (Nasdaq: TSLA) takeover even possible?
Bloomberg speculated that that might be the case recently. With Tesla paying off its $452 U.S. Department of Energy loan, a barrier to a deal has been lifted.
Valuation on the company, which recently reported its first quarterly profit after being around for over a decade, is a little steep; shares currently go for about 816 times fiscal 2013 earnings estimates. Should Tesla be able to ramp-up production, it might grab the attention of larger players in the auto segment, like Ford (NYSE: F), Fiat's Chrysler, and General Motors (NYSE: GM), although search giant Google (Nasdaq: GOOG) might be willing to take a look as well. Both Toyota (NYSE: TM) and Germany's Daimler AG are investors in Tesla and might be interested in further investment.
One other barrier to a purchase would be CEO Elon Musk. He currently holds a 24 percent stake in the company. Though he has commented in the past that one of the best outcomes for the brand would be a sale, a long-term goal of Musk's is to create a compelling, mass-market auto, which he believes is still several years away.
Tesla is aiming for 21,000 deliveries of its new Model S sedan in 2013. The company shipped about 2,450 Roadsters in 2012, each with an MSRP of $109,000. Revs were $413 million in 2012 and analysts see that number hitting $3.2 billion in 2015.
To bolster demand for its products, Musk and Tesla are rolling out a network of fast-charging stations, starting with an LA-to-San Fransisco route and moving to the East Coast next year. Along with the Supercharger program, Musk demonstrated a battery-swapping system, which would cost drivers the equivalent of 15 gallons of gasoline and be performed in about 90 seconds.
Tesla's Model S, with a base price of $69,900, is still a little pricey for most U.S. consumers at this point. However, Musk has said in the past that the company has plans to unveil a vehicle within the $30,000 to $40,000 price range, which would significantly broaden the company's consumer base.
Google has been developing automated vehicle technology for a while now and it might find Tesla's electric vehicle technology appealing. Google last reported having $52 billion of cash and equivalents on the books, more than enough to cover Tesla's $12 billion market cap, though a substantial premium might be expected at this point.
Shares of Tesla are just about flat on the session after starting in positive territory.
Bloomberg speculated that that might be the case recently. With Tesla paying off its $452 U.S. Department of Energy loan, a barrier to a deal has been lifted.
Valuation on the company, which recently reported its first quarterly profit after being around for over a decade, is a little steep; shares currently go for about 816 times fiscal 2013 earnings estimates. Should Tesla be able to ramp-up production, it might grab the attention of larger players in the auto segment, like Ford (NYSE: F), Fiat's Chrysler, and General Motors (NYSE: GM), although search giant Google (Nasdaq: GOOG) might be willing to take a look as well. Both Toyota (NYSE: TM) and Germany's Daimler AG are investors in Tesla and might be interested in further investment.
One other barrier to a purchase would be CEO Elon Musk. He currently holds a 24 percent stake in the company. Though he has commented in the past that one of the best outcomes for the brand would be a sale, a long-term goal of Musk's is to create a compelling, mass-market auto, which he believes is still several years away.
Tesla is aiming for 21,000 deliveries of its new Model S sedan in 2013. The company shipped about 2,450 Roadsters in 2012, each with an MSRP of $109,000. Revs were $413 million in 2012 and analysts see that number hitting $3.2 billion in 2015.
To bolster demand for its products, Musk and Tesla are rolling out a network of fast-charging stations, starting with an LA-to-San Fransisco route and moving to the East Coast next year. Along with the Supercharger program, Musk demonstrated a battery-swapping system, which would cost drivers the equivalent of 15 gallons of gasoline and be performed in about 90 seconds.
Tesla's Model S, with a base price of $69,900, is still a little pricey for most U.S. consumers at this point. However, Musk has said in the past that the company has plans to unveil a vehicle within the $30,000 to $40,000 price range, which would significantly broaden the company's consumer base.
Google has been developing automated vehicle technology for a while now and it might find Tesla's electric vehicle technology appealing. Google last reported having $52 billion of cash and equivalents on the books, more than enough to cover Tesla's $12 billion market cap, though a substantial premium might be expected at this point.
Shares of Tesla are just about flat on the session after starting in positive territory.
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