This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple Shouldn't Buy Tesla, but (Blank) Should!

Taking it one step further, what if it did that with one of the most highly in-demand vehicles in the country? One that is considered so valuable and scarce, that a used one actually costs more than a new one?

Tesla is ramping up production to an expected 35,000 vehicles in 2014, increasing from about 600 vehicles per week currently to 1,000 cars per week by the end of the year. Gross margins increased to 25.2% in the most recent quarter and are forecasted to climbed up to 28% by year's end. 

Telsa's valuation is easy to nitpick by any traditional standard, but comparing it to other automakers is simply foolish. It's not GM, no matter how many times the bears compare the valuations. Sure, it builds cars. But make no mistake: it's a technology company. And a luxury technology car company at that. 

It's perfect for Google, if Mountain View is looking to go the non-licensing route by producing its own cars. I just think that Google has nothing proprietary about its self-driving cars. Mercedes-Benz is doing it. BMW, Audi, GM. You name it, and there's an automaker working on it. What makes Google that much different or that much better? 

Of course, buying Tesla is becoming much more expensive now, with the market cap pushing $26 billion. And of course, someone looking to buy Tesla would have to pay a premium on top of that, not like there isn't a ton of premium already built into the share price. 

If Google, which has $58.7 billion in cash and short-term investments, were to acquire Tesla, it would get a hell of a brand with a hell of a product. 

I know it sounds crazy. And this would truly be a huge takeout story. Probably the biggest of the year if it happened. There's no doubt that Tesla is way overvalued.

But autonomous driving will absolutely be the future. Without a doubt. The public perception -- which, if you've done any research on autonomous driving, you will know that that's a bigger hurdle than the actual technology -- will come around, and likely much faster than most think. 

Eventually every new car will have autonomous driving. It will be the new normal and people will love it. Just like they'll love charging their electric car, refueling at charging stations, and never putting a drop of gasoline in their car again. 

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,923.44 -62.17 -0.37%
S&P 500 1,964.25 -8.58 -0.43%
NASDAQ 4,396.1110 -22.9230 -0.52%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs