Ford Motor Company (F), General Motors Company (GM): Tesla Motors Inc (TSLA) a Takeover Target?

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Two other companies are even more likely to make an offer. I am talking about companies that already have a strong presence in luxury automobile market and want to capture a new section (clean energy) of the same niche. BMW and Daimler are two such companies.

Though Elon Musk has been reluctant to consider a takeover, Tesla Motors Inc (NASDAQ:TSLA)’s board will be compelled to evaluate one if an offer comes along. Elon Musk is undoubtedly the largest shareholder of the company with about 32% stake, but he doesn’t own a majority stake. But if a lucrative offer comes along, institutional investors might agree to one; the eight largest institutional investors, Fidelity Investments, Blackstar Invesco, Abu Dhabi Water & Electricity Authority, Capital Research Global Investors, Morgan Stanley, Daimler AG, Invesco Advisers and Vanguard Group, have a combined stake of more than 50%.

Colin Tweel has no position in any stocks mentioned. The Motley Fool recommends Ford, General Motors, and Tesla Motors . The Motley Fool owns shares of Ford and Tesla Motors .

The article Is This Automobile Company a Potential Takeover Target? originally appeared on Fool.com.

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