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Will Tesla Be Taken Over?

Discussion in 'Tesla Motors' started by Causalien, Dec 24, 2013.

  1. Causalien

    Causalien Reaper of Trolls

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    Tesla to be acquired. Is the rumour going around cnbc and twitter. If my interpretation is correct, one of the old guards wants to buyout TSLA and "potentially" kill it while they still can. Cnbc is just their way to pass the word without their pride on the table.

    TSLA is now a real company in their eyes. We are in the 3rd phase: "Then they fight you"
     
  2. Johann Koeber

    Johann Koeber Member

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    How could they, really?

    Elon, myself and quite a few others here
    will not give up their shares.
     
  3. dha

    dha Member

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    The acquisition rumors seem to be based on this joke of an interview:

    Tesla might find a buyer in 2014: Pro
     
  4. Causalien

    Causalien Reaper of Trolls

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    Every joke is 25% truth. I do not believe in coincidences. Call it Causa's paranoia theory if you will.
    $180 is a prediction based on pure TA, it has no fundamentals in it. Sounds crazy? yes. But I've seen too many gaps filled to my life to go against it. It is one of the most ridiculous concept in TA. Yet is the one that has the most chance of happening.
     
  5. FANGO

    FANGO Active Member

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    Not only will people not sell shares (though I'd consider it if someone was going to give me 500/share today), it's just too late. Who's going to spend 20+ billion? Not to mention that they can't just pay the market cap, they would have to pay a premium. If anyone wanted to buy the company out, they've missed their chance. I'm sure that's more than they're willing to spend.
     
  6. MikeC

    MikeC Active Member

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  7. RobStark

    RobStark Active Member

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    The old guy analyst called it a "way out" prediction not a rumor.

    Then he said TSLA evaluation is in "la la land" that it needs to come down to a "reasonable level" for General Motors to buy.

    A year ago these guys called a $4B evaluation "la la land" now they would call it a fire sale price.

    By the time $18B seems reasonable, TSLA will have a market cap of $30B.
     
  8. Citizen-T

    Citizen-T Active Member

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    As Elon said the last time there was talk of GM buying out TSLA, "they can't afford to buy Tesla. "

    (paraphrased)
     
  9. Raffy.Roma

    Raffy.Roma Active Member

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    This is nice. :biggrin: LOL!
     
  10. RobStark

    RobStark Active Member

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    There are two corporations that might be a good fit to buy Tesla and have the cash.

    Toyota Motors. They believe fuel cell electric vehicles are the future not battery electric vehicles. So no need to buy Tesla from Toyota's POV.

    Then there is Google. Elon, Sergey and Larry are pals. This would definitely be a friendly takeover/merger without any intent on killing the electric car.

    And I suspect all of us here would make a nice little profit :)
     
  11. Raffy.Roma

    Raffy.Roma Active Member

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    I would be afraid if a Company bought Tesla because IMO they would have as main purpose to get rid of a competitor who could overtake automakers all over the world and not to develop and improve Tesla.
    So I hope that if somebody will ask Elon to make a deal to buy Tesla Elon will answer: "No thanks"
     
  12. Twiddler

    Twiddler Member

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  13. Causalien

    Causalien Reaper of Trolls

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    #13 Causalien, Dec 24, 2013
    Last edited by a moderator: Dec 26, 2013
    It's not something that's cast in stone. Elon is a businessman and when an opportunity that makes sense present itself. He will accept it. Just like the secondary offering to get out of gov debt right after he explicitly stated tsla doesn't need. Tsla history is littered with events where Elon has to eat his pride and go back on his words.

    The only american company with the fire power is Ford. But at their current firepower, they can only present it as a merger of equals. Usually, these mergers end with the exodus of personnels from the losing company. You can tell who won from the first exec that leave after merger, or demotion.

    The way I would approach this tAke over, is to use a close ally that are more well received by the tech crowd. Where the CEO is either controlled by debt, or political favor. I would ask this ceo to appease Elon's desire to fully focus on spacex while assuring the full execution of the tesla dream and giving Elon a controlling stake of the resulting company. Once that deal is completed, subsequent manufacturing problems and accidents will follow with major dilution events. These events will be used to wrest control from Elon and the early die hard followers. Once enough is purchased from the dilution event using government money, final liquidation can happen a la fatal accident associated with battery tech.
     
  14. RobStark

    RobStark Active Member

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    Ford has about $15B cash on hand and about $15B in debt from automotive operations not including~$100B in debt from the financing operations.

    Google has about $50B on hand but there are not in a capital intensive business. They don't have the next generation of vehicles to fund.
     
  15. bareyb

    bareyb Active Member

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    Apple could buy them. They have enough cash. People are already calling the Model S a "Mac on Wheels". :D
     
  16. Jackl1956

    Jackl1956 Member

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    Elon Musk is a true believer. He has repeatedly made decisions contrary to his financial interest. His back to the wall, SpaceX and Tesla Motors on the brink of financial collapse, Elon went all in.

    I am convinced Elon will see Tesla Motors revolutionize (electrify) transportation. This battle between shorts and longs will last years.
     
  17. purplewalt

    purplewalt Active Member

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    My understanding is that should a potential buyer try to negotiate purchasing/acquiring a willing Tesla Motors, Daimler AG has the first right of refusal to acquire the Tesla Brand and its assets.
    That is due to the May 19, 2009 $50M loan Daimler AG (which gave Daimler less that 10% equity) made which saved Tesla from bankruptcy.
     
  18. 772

    772 Member

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    If it means selling out to a traditional automaker or a big oil co, I doubt it. Doing so would mean leaving everyone who drives a Tesla out to dry. He won't settle for "an opportunity" -- he wants a lot more than that.
     
  19. gene

    gene Active Member

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    I agree, he would never sell to anyone who would lessen the mission of Tesla. What does a man want more than wealth? To be remembered in history, to leave a legacy, that's what.
     
  20. bareyb

    bareyb Active Member

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    #20 bareyb, Dec 24, 2013
    Last edited: Dec 24, 2013
    Agreed. Men like Elon Musk are not motivated by money. They are motivated by how much they can change the World. If things go as we all hope they will, Elon Musk's name will be cemented in History forever, much like Steve Jobs or Henry Ford.
     

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