While one analyst implored Apple to go into the automotive industry by purchasing Tesla Motors to the bemusement of all, another analyst is suggesting that General Motors may be the one to pull the trigger in the coming year.
Yra Harris, a veteran trader with Praxis Trading, told CNBC earlier this week that Tesla’s brand of luxury EVs would be a perfect fit with GM overall, especially in terms of technology and service.
The key to purchasing Tesla comes down to valuation, an issue CEO Elon Musk has warned about for months on end. Currently, the EV automaker holds a market capitalization of over $18 billion, with shares trading at 100-plus times forward earnings. Still, should a market correction occur — and should Musk decide he’d rather make a Lotus Esprit into a functional submarine now than build an electric truck in 2017; he has said he wouldn’t sell Tesla until the third-generation models were produced — then perhaps Harris’ prediction will come to pass in the new year.