Tesla Motors Inc (NASDAQ:TSLA) shares rallied on Monday after a difficult week last week. They climbed 8% during the regular trading day ahead of tomorrow’s earnings report. Meanwhile speculation about the automaker’s future continues as one writer suggests that Google Inc (NASDAQ:GOOG) should buy Tesla.
For some reason, it seems like people just can’t get past the idea that a big company should buy Tesla Motors Inc (NASDAQ:TSLA). Last week someone said Apple Inc. (NASDAQ:AAPL) should buy it, but I just don’t see that happening. Google, on the other hand, might be more likely to do so.
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Google to buy Tesla?
Bret Kenwell of The Street made his suggestion about Google buying today, although this isn’t the first time we have heard this idea. In August, Bloomberg suggested that Google might be interested in buying Tesla Motors Inc (NASDAQ:TSLA).
Kenwell says Google Inc (NASDAQ:GOOG) should buy Tesla because of its wealthy, early adopter customers and also its premium level auto manufacturing. He also notes that although Google has its fingers in plenty of cookie jars, the company is the leader in self-driving cars. According to Kenwell, the self-driving vehicle market could become “one of the biggest markets imaginable.”
Why Google should buy Tesla
He says instead of Google developing its self-driving software and then teaming up with an automaker, the company should just outright buy Tesla Motors Inc (NASDAQ:TSLA). He says this will enable Google to get ahead of other automakers who are working on their own self-driving technology. He also notes that by acquiring Tesla, Google has a strong luxury brand and a vehicle which has received Consumer Reports’ highest rating ever.
And of course he notes that self-driving cars won’t be cheap to start out. They’ll come with a high price tag, so Google is going to want Tesla’s wealthy early adopters to be on board with it.
The connection between Tesla and Google
This idea of Google buying Tesla Motors Inc (NASDAQ:TSLA) isn’t nearly as far-fetched as the suggestion that Apple should buy the automaker. Tesla CEO Elon Musk has said in the past that he would consider putting Google’s self-driving technology in the automaker’s vehicles. He has also said that he would remain with the automaker in the near term and won’t be selling it any time soon. So even if Google wants to buy it, Tesla might not be for sale for a while.
And that’s not the only connection between Tesla and Google. Google’s Larry Page was one of Tesla’s early investors.