Now that Tesla has fully repaid its government loan nine years early and has just reported its first quarterly profit, could the American automaker be sold to the highest bidder?
It’s certainly an interesting proposition, but it’s unlikely that Elon Musk is willing to part with the brand so early. According to analysts, Tesla could become the world’s most expensive automaker if it was sold, as the electric automaker trades for about 816 times its estimated 2013 earnings.
That value is the highest among automakers valued at more than $5 billion, but if Tesla continues to grow at the rate that it is and can continue scaling up its vehicle sales and production, it could attract potential suitors such as Google, which has $52 billion in cash and is clearly interested in investing in vehicle technology. The tech giant has been dabbling with autonomous vehicles and is clearly a big fan of being green.
Tesla’s initial public offering (IPO) in 2010 was $17 a share and has surged 194 percent to $99.55 this year. Musk currently owns 24 percent stake and recently said the sale of the company is “one of the possible outcomes, I suppose.” But he doesn’t expect a deal anytime soon since he still hasn’t met his goal of establishing Tesla as a creator of a compelling mass-market car.
Analysts see Tesla’s revenue to rise to $3.2 billion in 2015, a dramatic increase compared to its $413 million last year. But Tesla has made huge moves this year, with the success of its Model S sedan along with the launch of its supercharger stations and most recently, its battery swapping technology that will allow Model S owners to swap their batteries in around 90 seconds without even leaving their car.
But the major focus is the fact that now that Tesla has repaid its loan, the idea of it being sold can even be entertained. One thing is for sure, Tesla has paved itself a path that’s the complete opposite of competitor Fisker, which is struggling to find any sort of buyer even at a discounted price.
[Source: Automotive News]
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