Tesla Motors Inc (NASDAQ:TSLA) has paid off its entire loan from the United State Government and thereby warded off one hurdle which previously interfered with takeover deals. The loan was provided on the condition that Tesla Motors Inc (NASDAQ:TSLA) will not be able to sell itself unless it pays the whole loan.


There are, however, no guarantees because CEO Elon Musk will not let Tesla Motors Inc (NASDAQ:TSLA) go, and any company who wishes to acquire Tesla will have to pay a high amount for a company which has just posted its first quarterly profit, and also has only a 10 year history in the automobile industry.

Google Might Be Interested in Tesla

There will be some big names interested in acquiring Tesla Motors Inc (NASDAQ:TSLA) if the company succeeds in increasing vehicle sales, suggests a report from Bloomberg by Tara Lachapelle & Alan Ohnsman. Google Inc (NASDAQ:GOOG) is one such interested buyer with $52 billion in cash and is also making some investments in  car technology. Another interested candidate could be Steve Westly, who is an early investor in the $12 billion company.

“Tesla has developed an appealing and credible product with game-changing technology,” Jim Press, the former deputy CEO of Chrysler Group LLC, said in a telephone interview.

He also said that Tesla Motors Inc (NASDAQ:TSLA) needs to prove that the success of the company is going to be stable for the long term. Additionally, the company has a strong financial base that will make Tesla an attractive takeover target.

Musk Says Sale Possible, But Not Immediate

Owner Elon Musk, who holds 24 percent of Tesla Motors Inc (NASDAQ:TSLA), said that a sale of Tesla is possible, but it will not happen in the near future.

Ben Kallo, an analyst with Baird in San Francisco, said that the company has opened new gateways for possibilities with the repayment of the loan but believes that Tesla still holds much value which needs to be unearthed before selling the company.

According to the analysts, Tesla at present may be too pricey to be acquired by another automaker.

Tesla Pricey

Tesla Motors Inc (NASDAQ:TSLA) stock shot up 194 percent to $99.55 in 2013 last week. This was the third biggest rally by a U.S. stock, which is valued more than $5 billion, according to Bloomberg data.

According to Bloomberg, Tesla is trading at 816 times the estimated 2013 earnings, which is the highest compared to all other automaker. The California based automobile manufacturer is valued at $5 billion.

Towards the end of 2012, the company sold 2,450 Roadsters, which is a two-seat electric sports car worth a $109,000.

The second model of the company’s Model S was priced at $69,900 and delivery of the same started last year. The company has already achieved its target of 21,000 deliveries in 2013.