Tesla Can Now Be Bought… Bloomberg Discusses “Possibility” Of Google

June 25th, 2013 by Zachary Shahan

I’m not going to lie — I’m not a fan of premature speculation. Nonetheless, it’s hard to avoid it when it involves Tesla, Google, and Apple, and when it’s started by Bloomberg. So, here’s the (super premature) speculation, why Tesla isn’t going to be sold anytime soon, and why we shouldn’t even be discussing this at this point in time… and should be writing about California high-speed rail or something.

The sleuths at Bloomberg (or probably elsewhere first) have noted something interesting about Tesla Motors’ now-paid loan agreement with the US Department of Energy (DOE). Within the agreement, Tesla could not offer itself up for sale as long as it owed the DOE money.

Well, to big fanfare and resulting in a surging stock price, Tesla recently paid off its DOE loans 9 years early. That means, of course, that it’s now legal for Tesla to put itself on the market. But to whom would Elon Musk and crew sell the company?

Photo Credit: atmtx / Foter.com / CC BY-NC-ND

Well, Musk has previously stated that if Tesla were to be sold, it would have to be to a rich, tech-focused company with a good heart (okay, he didn’t put it in those words… but you get the point). Musk did note that Google would be one very decent option.

For years, Google has had a very strong focus on renewable energy and cleantech. It wants to help the world, and it wants to use its tech expertise and sizable wallet (the real Google Wallet) in order to do so. Additionally, it’s got a big self-driving car program going that is clearly within the same product realm. I think anyone familiar with this space could very definitely see Google making such a purchase.

Bloomberg has decided to go ahead and dedicate a post to the subject, and while I probably wouldn’t otherwise (see below), I’ll go ahead and chime in, too.

Tesla Wants To Wait

Chairman and CEO Elon Musk has said numerous times that he’s not stepping down from the head of Tesla until it has created a mass-market, affordable EV. That’s still several years away. The next few years should see Tesla bring its electric SUV, the Model X, to market. Following that, the plan to to bring to market a smaller EV that will sell for about half the price of the Model S. The target year for that is 2017.

Even in an interview with Bloomberg last month, Musk said: “I’ve said from the very beginning, from the creation of Tesla, that our goal is to create a compelling mass-market car. I would not consider stepping away from Tesla until we’re there…. We’re several years away obviously.”

Google (& Anyone Else) Would Be Better Off Waiting

On the flip side of the equation, I don’t think anyone would be up for buying Tesla at the moment anyway. As Bloomberg rightly notes, Tesla is currently trading for 816 times more than its 2013 estimated earnings. 816 times. (Note: for various reasons, not the least of which were numerous, sequential announcements by Tesla, the company’s stock has broken through the roof in recent months.)

So, at this point, Tesla seems to be greatly overvalued on the stock market, and any potential buyer would probably be much better off waiting.

Aside from Google, other potential buyers (down the road!) could be Apple, any of the major automobile companies, or EV Obsession (oh, wait… scratch that last one).

Jumping The Gun

As I stated above, I wouldn’t have even gotten into this discussion if Bloomberg didn’t get it rolling. This is not something Tesla seems to even be giving much thought to at this point. In the interview mentioned above, regarding a question about a potential takeover, Musk replied, one of the possible outcomes, I suppose.”

“I suppose…” not the strongest response. In response to Bloomberg‘s emails regarding this new story on the takeover option, Musk and even tesla spokeswoman Shanna Hendriks didn’t even give Bloomberg an email response. In other words, really, let’s move on — it’s way too early for this.

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Tags: Bloomberg News, Google, Tesla, Tesla for sale, Tesla Google, Tesla Google sale, Tesla stock, Tesla stock price, tesla stocks

About the Author

Zachary Shahan spends most of his time here on CleanTechnica as the director/chief editor. Otherwise, he's probably enthusiastically fulfilling his duties as the director/editor of Solar Love, EV Obsession, Planetsave, or Bikocity. Zach is recognized globally as a solar energy, electric car, and wind energy expert. If you would like him to speak at a related conference or event, connect with him via social media. You can connect with Zach on any popular social networking site you like. Links to all of his main social media profiles are on ZacharyShahan.com.

Anothercoilgun

Google? No thanks I will pass on this automobile if this comes to pass. A brave new world I gladly will not enter.
Nealicus

I can never get enough Tesla news. I’ve been a believer since I first saw their roadster in a car show that I just happened to wander into on a trip to Hawaii. Zach, I know you have a lot of readers, you should do a quick story on the White House petition open right now to have Obama address the move of auto dealers who are trying to make it illegal for Tesla to sell direct to consumer. The petition currently has around 17,000 votes, but needs to make it to 100,000 within two weeks in order to force a response from the Obama administration.
- http://zacharyshahan.com/ Zachary Shahan
  
  Just saw that. Will have a piece coming on it soon.
Kyle Field

It’s over valued based on speculation of future potential. Google is in the sustainability game for the long haul over which they would realize much of that potential and then some.

That and Google + Tesla = double sexy = even more attractive. Think about what they could do bringing those two together.

I could see Google buying 51% to take majority interest and let Elon drive until his vision is realized.
- Bob_Wallace
  
  Google realizes that someone could invent a better way to search the web and replace them very quickly. Remember My Space? Notice the signs that people are walking away from Facebook?
  
  Investing in other industries makes huge sense. A 49% share and let Elon run Tesla makes sense as well.
Bob_Wallace

“Chairman and CEO Elon Musk has said numerous times that he’s not stepping down from the head of Tesla until it has created a mass-market, affordable EV.”

Often when one smells smoke, fire can be discovered.

The Google boys have loads of money. They are very interested in using it in investments that help the planet.

Could be that considerations are underway to use a few Google billions to quickly make Tesla a much larger manufacturer. Open up more plants and crank product out at higher volume. It could be timed for the ” mass-market, affordable EV”.

I’d bet that Elon and company have a very good idea of what that affordable EV will look like and are well into the design process. I’d bet they are already working with battery and other suppliers to have inputs ready to go when the time comes.
- Marion Meads
  
  Side by side with the manufacturing should be the construction of solar powered charging stations that can line the freeways for quick charging. In fact the rest areas along I-5 for example are spaced out ideally for current battery technology EV. And most of these rest areas are next to idle lands that can be tapped for solar.
  - Bob_Wallace
    
    Already underway. I-5 has been turning into an electric corridor from Canada to Mexico. Parts are already finished with chargers no more than 35 miles apart. (Level 3/rapid chargers further spaced.)
    
    The project should be finished soon.
    
    I expect charge points will more commonly be located at exchanges where restaurants are located. More likely to have a large power feed in that area as opposed to rest stops. And merchants are likely to campaign for chargers close to them.
Ross

Take their money but maintain control. Anyone besides Elon in charge would be bad.
- JCaude4553
  
  мy coυѕιɴ ιѕ мαĸιɴɢ $51/нoυr oɴlιɴe. υɴeмployed ғor α coυple oғ yeαrѕ αɴd prevιoυѕ yeαr ѕнe ɢoт α $1З619cнecĸ wιтн oɴlιɴe joв ғor α coυple oғ dαyѕ. ѕee мore αт… ViewMore——————————————&#46qr&#46net/kkEj
  
  I expect charge points will more commonly be located at exchanges
  where restaurants are located. More likely to have a large power feed
  in that area as opposed to rest stops. And merchants are likely to
  campaign for chargers close to them.
- http://zacharyshahan.com/ Zachary Shahan
  
  Have to agree. Elon has to stay at the helm.
Amber Archangel

Thanks for another great article, 816 times 2013 earnings? Does that remind you of the dot com days? Love the comment about EV Obsession possibly being a potential buyer. I cannot see Elon letting go of his project until it is a little further along. It seems to me that most people of the entrepreneurial spirit want to see the success of their effort. I don’t think he’s there yet. Maybe I’m wrong.
- Amy Clavero Real
  
  Well you can even say that the stock value is a million times than what they earned and it doesnt matter that much if the earnings for example is zero or very low. A very large number multiplied by zero is still zero. It should not be based on earnings alone.
  - Bob_Wallace
    
    Right. Stock prices are generally based on expectations of future earnings and company value.
  - http://zacharyshahan.com/ Zachary Shahan
    
    Good point.
- http://zacharyshahan.com/ Zachary Shahan
  
  Yeah, I can’t see him walking away prematurely. What you wrote, and also he seems obsessive about keeping his word. And, seriously, I don’t think he’s in it for the money.

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