Analyst: GM to Own Tesla in 2014

Cameron Aubernon
by Cameron Aubernon
analyst gm to own tesla in 2014

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.

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  • Volt 230 Volt 230 on Dec 29, 2013

    Doesn't Caddy need a flagship sedan? Put an ICE in there and voila! instant flagship, but at what cost??

    • SCE to AUX SCE to AUX on Dec 30, 2013

      You've described the ELR, coming soon to a dealer near you.

  • Inside Looking Out Inside Looking Out on Dec 29, 2013

    Didn't GM try to buy Peugeot? Or Ford and in a moment of desperation? GM can be very stupid, proven many times. They are also bad accountants capable to overpaying for brands they do not really need.

    • Jz78817 Jz78817 on Dec 30, 2013

      Wasn't the PSA mash-up supposed to help save Opel or something? as for Ford, yes, they proposed a merger in order to try to save what was left of GM. Once Ford saw their books they said "Holy Shit" and backed away.

  • JaySeis JaySeis on Dec 29, 2013

    I'd buy a Tesla but not if GM owned it because it'd be a colossal FU beyond belief and buying tech/design is the worst guarantee that you can sustain.

  • Beerboy12 Beerboy12 on Dec 29, 2013

    Sorry, did I miss the part were Tesla was for sale? I am trying to understand why this is even being discussed. Wake up and smell the ozone, this story is just nonsense, for more reasons I care to memtion.