Tesla’s Value Makes Its Takeover a Difficult Task image

Tesla has become the most expensive automaker in the world, after it managed to repay the US loan.

Tesla has been a log-speculated takeover target but now that the automaker has freed itself from the US loan conditions, CEO Elon Musk might not be willing to part with the automaker, and however the company’s price will keep many investors at a considerable distance.

Tesla trades for 816 times more than the estimated 2013 earnings, being valued at around $5 billion. If Tesla will increase its vehicle sales, it might attract buyers such as Google, which has already invested in car technology, but also conventional car makers.

“Tesla has developed an appealing and credible product with game-changing technology,” Jim Press, the former deputy CEO of Chrysler Group LLC, said in a telephone interview. “They need to prove their success is sustainable for the long term and that it is based on a solid financial foundation. If they do, they should be an appealing takeover target.”

If Tesla’s initial IPO in 2010 was at $17 a share, this year the stock increased to $99.55 up 194%, with shares today, June 25th, losing 1.3% to $98.25. Elon Musk, who owns 24% of the automaker, said that he does not plan to step away from Tesla until he manages create a compelling mass-market car.

Source: Bloomberg