Tomahawk, WI 01/07/2014 (BasicsMedia) – It has been said that if Tesla Motors Inc (NASDAQ:TSLA) were a startup app or smartphone maker, Apple Inc (NASDAQ:AAPL) or Samsung Electronics would have gone for it in an acquisition deal. But what is happening in the auto industry, isn’t any of the big motors seeing some opportunities in Tesla?

Well, rumors have it that any day one of these days Ford Motor Company (NYSE:F) or General Motors Company (NYSE:GM) could consider striking a deal with Tesla Motors Inc (NASDAQ:TSLA). This is because it is no longer a secret in the auto industry that electric vehicles have a future, at least looking at how Tesla has been able to increase its sales over such a short span.

While interest may be there to takeover Tesla Motors Inc (NASDAQ:TSLA), it is important we explore the possibility and viability of such deals. This begins by looking at the possible contenders in Tesla Motors Inc (NASDAQ:TSLA) takeover.

Deal with Ford Motor

Ford Motor Company (NYSE:F) knows what can come out of the auto industry if you produce vehicles that the market wants. The company is itself a testimony to how a loss making business can be turned into profits with a clear plan. Being in this position, and buoyed by its more than $26 billion cash hoard, Ford can consider acquiring Tesla Motors Inc (NASDAQ:TSLA).

However, the $19 billion value of Tesla Motors Inc (NASDAQ:TSLA) seems a bit of an impediment for an outright purchase. This being the case, Ford is better placed striking a partnership deal with Tesla Motors Inc (NASDAQ:TSLA) for which it will have bought into a bright future and still be left with good money for its own operations.

Deal with General Motors

General Motors needs to grow and Tesla Motors Inc (NASDAQ:TSLA) offers that growth opportunity. However, GM already has its fair share of challenges which demand a lot of attention. While a deal with Tesla cannot be ruled out, such seem unlikely at present. Perhaps a partnership deal can do for now. But even then, GM must still deal with its declining sales in Europe and troubles in Australia where it has announced to close down a plant by 2017.

Investor interest

All said, it is very important to know how good or bad a deal between Tesla Motors Inc (NASDAQ:TSLA) and another automaker stands for investors. Tesla Motors Inc (NASDAQ:TSLA) has come a long way. The company has actually confounded critics with its speedy growth. At the moment the company doesn’t look cash trapped that it would be desperate for acquisition funds. This simply means that I believe Tesla Motors Inc (NASDAQ:TSLA) is best in its present arrangement.

Perhaps if there is any need for partnership, then that should be between Tesla Motors Inc (NASDAQ:TSLA) and a battery supplier company. Tesla Motors Inc (NASDAQ:TSLA) is currently losing opportunities in the market because it is not able to meet the demand due to battery shortage. A deal to this effect will ensure that the company turns higher profits and over a short time.

Bottom line

Acquiring Tesla Motors Inc (NASDAQ:TSLA) can be an expensive investment for the many company in the present economic condition. But even so, that would not be in the best interest of investors in the stock. I think the company has overcome challenges that would have called for acquisition or partnership and that it is better placed to return value to investors running its own affairs.

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