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Tesla Takeover By GM In 2014, Says Analyst Yra Harris
Yra Harris, a veteran analyst working for Praxis Trading has raised several eyebrows with his controversial prediction. Speaking to CNBC, the trader said that 2014 will be the year Tesla Motors, the extremely successful electric car manufacturer, will be taken over by Detroit based General Motors.
As is clear, none of the American mainstream carmakers have been successful in selling electric cars. While sales of GM's Volt has fallen compared to 2012, Ford continues to struggle to sell the electric version of the Ford Focus. Tesla's Model S on the other hand has been selling extremely well, both in North America and Europe and the has recently expanded to China. Despite the recent Model S fires resulting from accidents, Tesla has a market capitalization of more than $18 billion, which is over 100 times its income.
Yra Harris believes that General Motors and Tesla make a perfect fit, with GM benefiting from Tesla's electric car know how and the latter from GM's well established global sales and service network. There's no doubt that GM would benefit from such a takeover. But such a takeover would depend on whether or not Elon Musk, Tesla Motors' founder would want to be bough over by a generic car manufacturer like GM.
Reaction to Yra Harris's prediction by the public is clear and predictable. No one wants a successful and off-beat brand such as Tesla to come under GM and lose its identity. Many also believe such a takeover would end with GM eventually shutting down Tesla Motors. But more than anything else, almost everyone believes Harris is wrong in his prediction. As for us, we hope he is.
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