Not so long ago Google almost bought Tesla

Discussion in 'Off-Topic' started by Carnage, Apr 20, 2015.

  1. Carnage

    Carnage SRT Hellcat Supercharged Moderator Staff Member Hellcat Car Club Gold Supporting Member HCC Charter Member

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    Google almost bought Tesla in 2013 to save the company

    image.jpg

    Tesla almost parked in Google's garage.

    In early 2013, as Tesla was struggling to boost demand for its electric cars, turn a profit and steer itself away from the threat of bankruptcy, CEO Elon Musk came close to finalizing a deal to sell his company to his friend Larry Page at Google in an effort to save it, according to a report in Bloombergexcerpted from a forthcoming book on Musk.

    The deal would have reportedly seen Google fork over $11 billion in total to buy Tesla, including $5 billion which would have been allotted for factory expansions, with assurances to let Musk continue running Tesla for up to eight years. As negotiations continued, Tesla's sales began to improve and Musk ultimately felt comfortable walking away from the deal.

    At that price, the deal would have been Google's second largest ever, just behind its $12 billion acquisition of Motorola Mobility. Yet, it looks cheap today considering Tesla has a market cap of $25 billion.

    Reps for Tesla and Google did not immediately respond to our request for comment.

    The acquisition would have paired two of the tech industry's most ambitious entrepreneurs — Musk and Google's Page — in one company. It also might have combined Tesla's automotive experience with Google's nascent automated car program at a time when the market for self-driving vehicles was just about to heat up. (Presumably Musk would have continued running SpaceX, his other company.)

    Mostly, though, it sounds like the deal was an arrangement between friends. Page, Google's CEO, is described by Bloomberg as being friendly with Musk. Page said last year that he would prefer to give some of his substantial wealth to Musk than to charity.

    "He wants to go to Mars. That’s a worthy goal," Page said. "We have a lot of employees at Google who’ve become pretty wealthy. You’re working because you want to change the world and make it better; if the company you work for is worthy of your time, why not your money as well?"

    Apple has also had conversationswith Tesla.

    In the two years since backing away from the Google deal, Tesla's quarterly sales have topped 10,000 cars, the stock has surged above $200 a share, the company is now inching closer to producing self-driving cars of its own and it's now looking to its next major product.

    Moral of the story: it's nice to have rich friends, but it's even nicer to not have to use them.
     
  2. B5 Blue

    B5 Blue Platinum Member

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    And this helps me with a Hellcat how?:confused::confused::p:p:p:p
     
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  3. Carnage

    Carnage SRT Hellcat Supercharged Moderator Staff Member Hellcat Car Club Gold Supporting Member HCC Charter Member

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    LOL and this is off-topic how?
     

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