What If Google Inc (GOOGL) Had Acquired Tesla Motors Inc (TSLA) In 2013?

During the first half of 2013, Tesla Motors Inc (NASDAQ:TSLA) was struggling hard to survive. The electric car maker was not able to convert the pre-orders for its Model S vehicle into orders and generate revenues. There was also a possibility that Tesla Motors Inc (NASDAQ:TSLA) was on the verge of bankruptcy. A Book by Bloomberg claimed that Tesla Motors Inc (NASDAQ:TSLA)’s CEO Elon Musk was in talks with Google Inc (NASDAQ:GOOGL)’s CEO Larry Page over a possible acquisition by the tech giant in 2013. The book also revealed the terms that was discussed during that deal and explained the reason behind why the deal was not through. The Daily Mail North America CEO, Jon Steinberg talked on CNBC about his perspective on the rumor and what it would have meant to Google Inc (NASDAQ:GOOGL) at that time.

 Steinberg feels that it might have a casual talk between Musk and Page at that time. He said that every company do these kinds of talks with Google Inc (NASDAQ:GOOGL) and Facebook Inc (NASDAQ:FB). He thinks that it’s unfortunate for Google that the deal did not work out at that time. The terms of the deal during 2013 was a $6 billion acquisition of Tesla by Google and in addition to that an investment of $5 billion investment in factories.

Steinberg thinks that a $6 billion dollar deal with a $5 billion investment would have been awesome for Google. He feels that it would have been a big growth factor for Google at that time. He said that this reminds him of Microsoft Corporation (NASDAQ:MSFT)’s investment in Apple Inc. (NASDAQ:AAPL) and saved the phone maker.

“How bad would this have really been? If Elon Musk had sold this company for $6 billion, I don’t have it off the top of my head how much capital would have gone in at that point. But it would have hardly been a failure. Wouldn’t have been $26 billion company, it is now. But some would argue that’s an insane price for this. Give the Facebook bought Whatsapp for $19 billion and Google love batteries and solar panels and rocket ships this would have effectively been Google’s Whatsapp,” Steinberg said.

Steinberg said that Google ended up venturing into self-driving cars. He thinks that if the acquisition had happened, they would have ventured into in much earlier.

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