Could GM Buy Tesla In 2014?

Tesla Motors is the talk of both Silicon Valley and Wall Street, with analysts and futurists alike predicting that Elon Musk’s electric automaker could be a major acquisition for a tech giant like Google or Apple. Speculation has shifted however, with some analysts predicting that a major U.S. automaker, potentially GM, could make a bid to buy Tesla in 2014. Happy New Year!

Yra Harris of Praxis Trading told CNBC that a GM bid for Tesla would be a good fit for the Detroit-based automaker, which has so far struggled to penetrate the electric car market in the same way as the Model S. Despite claiming that Cadillac will compete directly with Tesla, the overpriced Cadillac ELR is a poor opening salvo in the coming EV war.

The better bet might just be to buy Tesla outright, gaining access to its patents and technology deals. GM may find itself competing against other bidders however, as both Google and Apple appear ready to make a move into the car market. A Google-Tesla alliance could bring self-driving electric cars to our streets before 2020, while Apple and Tesla could kick start an automotive app revolution.

But what about GM and Tesla? Such a tie-up is sure to make early adopters and technophiles cringe, with images of badge-engineered Teslas showing up at every Chevy dealership. And of course who can forget the EV1 debacle. But buying Tesla could also give GM a big leg up in the electric car arms race unfolding across the globe, as well as access to a global network of fast-charging Superchargers and proprietary charging technology. Of course this is all assuming Elon Musk is ready to part with Tesla Motors.

Would a GM buyout of Tesla be a good thing for electric cars, or a bad thing?

Source: CNBC via USA Today