2017 Tesla Model X on 2040-cars

Auto blog

Analyst predicts GM will buy Tesla in 2014

There's little question that Tesla has come at the automotive industry as an outsider. But will it last as an outsider for much longer? Not if you ask Yra Harris of Praxis Trading. According to USA Today, the veteran financial analyst recently predicted on CNBC that General Motors will try to buy Tesla in 2014.
It certainly wouldn't be the first time that GM acquired another automaker. It did just that when it purchased the rights to the Hummer brand from AM General in 1999 and completed its takeover of Saab the year after. But, of course, The General has since divested from both, shutting down its Pontiac and Saturn brands in the process. Daewoo and Oldsmobile are gone too, as is Geo. Chevrolet is to be withdrawn from Europe, and over the past few years, GM has sold its minority stake in Isuzu, Subaru, Suzuki and PSA Peugeot-Citroën as well.
Of course, none of these are dedicated electric carmakers like Tesla is, and the Volt may not be doing as well as Detroit had initially hoped. But does that mean it's ready to start expanding its brand portfolio again? With all due respect to Mr. Harris, somehow we doubt it - especially with Tesla currently enjoying sky-high market valuation. The company's market capitalization stands at over $18 billion - more than 100-plus times its earnings. That would make mounting a Tesla takeover a hugely risky and costly endeavor unless Wall Street tempers its stock value greatly.

NY Gov. Cuomo in favor of revived anti-Tesla store legislation

When we last left the New York auto dealers and their fight against Tesla Motors, there scene was an uneasy ceasefire. The New York State Assembly and its backers from the Greater New York Automobile Dealers Association said last summer that they would allow the three currently operating Tesla stores to continue operating but would pick up the issue again when the legislature reconvened in early 2014. Well, guess what? That time has come a new bill is being promoted that tries once again to stop the California automaker from selling its electric vehicles in its non-traditional way. The dealers say the bill doesn't target EV companies unfairly. Capital New York says representatives of the state's dealers have met with Governor Andrew Cuomo about the new bill and he apparently said he would sign it if it reaches his desk. The dealers say the bill doesn't target EV companies unfairly and just asks them to play by the same rules as everyone else, which means selling cars through traditional dealerships. Tesla says that traditional dealerships don't work for EVs and currently sells its Model S out of small stores in places like shopping malls. Actor Mark Ruffalo (best known as the Hulk in the recent Avengers movie) tweeted his support, saying that EVs are good for New York and that what the bill is trying to do is akin to stopping Apple from selling its products directly to customers. He also asked his many, many Twitter followers to call and oppose the bills. Tesla is fighting against similar laws and proposals in many other states, including Texas and Ohio. We have asked Tesla for a comment on the new New York legislation and will update this post if we hear back.

BYD CEO calls Tesla a rich man's toy, not worried about competition

We've heard the comment, "the Tesla Model S is a rich man's toy" before. Usually it comes from a Cranky McCrankster-type of character in the Comments beneath posts about the all-electric automobile. Not everyone sees the utility of an expensive car that can seat up to seven, run with Corvettes and only gets 265 miles on a charge. We get that, sort of, and everyone's entitled to their opinion. It's a bit odd, though, hearing the remark fall from the lips of Wang Chuanfu, however. BYD Auto's CEO made the comment – well, he said it in Chinese and it's been translated this way by the International Business Times – in an interview with Shanghai Securiites News, along with mentioning that he expects the California automaker to only capture a very small percentage of the Chinese market. That last bit is a fair point, though a tiny chunk of that burgeoning market could still mean a lot of sales. Tesla has intimated its hopes for at least 10,000 takers in its first year of operation in China and says its Beijing location is its biggest and most bustling. As for Chuanfu's comment, Tesla gave AutoblogGreen a simple, "no comment." BYD, of course, sells its e6 electric sedan in its home country and its sales might not even reach the 10,000 level, despite being more affordable and boasting a respectable 186-mile range. Mr. Chuanfu expects bigger things for it Qin plug-in hybrid, which rings up at $31,000 and offers 41 miles of battery-powered range before the gasoline engine kicks in. China wants 500,000 plug-in vehicles plying its streets by 2015's end and BYD wants to be a big part of that picture. While we can understand the competitive downplaying of Tesla's Chinese-market entrance, we expect that BYD is as well aware as anyone that Tesla has a more affordable future car on the horizon and that Chinese car buyers tend to favor foreign brands. It's a big market, though, so perhaps the two entities might help further each other's goals by cooperating on charging standards and infrastructure development instead of sniping. One can dream, right?