Tuesday, 31 December 2013

Stock Veteran Says GM Will Buy Tesla in 2014, Auto Exec Doubts It [w/Videos]

As one of the most advanced electric vehicle manufacturers, Tesla Motors is no doubt being closely monitored by volume carmakers wishing to gain a firmer foothold in the electric vehicle segment. General Motors, for instance, has openly admitted to creating a special unit to monitor Tesla Motors.

While that doesn’t necessarily mean GM wants to buy Tesla, there are some analysts who believe that this is the case and that a transaction could happen as soon as next year.

In an interview with CNBC, Yra Harris of Praxis Trading made a bold prediction that GM could try to buy Tesla Motors next year. The trader said Tesla is a perfect fit for the Detroit carmaker and that such a deal could make sense for both companies.

For GM, owning Tesla would give it access to advanced plug-in technology as well as a premium high-tech brand to its stable. In exchange, GM would help Tesla grow further thanks to its established global retail and service networks.

While there were previous rumors about other companies being interested in Tesla (such as Apple), a carmaking giant like GM or even Ford would likely be a better fit for the company founded by Elon Musk.

However, not everyone agrees with Harris, with former Mazda North America CEO Charles Hughes telling CNBC that the acquisition of Tesla by GM or Ford wouldn't work for any of the two Detroit-based carmakers. You can find out why from the second video posted below.

By Dan Mihalascu




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