Tesla was almost acquired as it approached bankruptcy
Tesla Motors is flying high these days, with a backlog of orders for its Model S electric car and a stock price above $200. But two years ago, the company was reportedly in such dire straits that it was nearly sold to Google.
An excerpt of an upcoming biography of Tesla CEO Elon Musk published by Bloomberg explains that Musk was on the verge of selling his unprofitable electric car company to Google early in 2013. Musk and Google CEO Larry Page are old friends, and Musk was able to work out some very favorable terms for the deal—Tesla would sell for $6 billion, Google would bankroll an extra $5 billion in capital expenditures for factory expansions and Musk would remain at the helm of Tesla for as long as eight years.
According to Bloomberg, the deal would have ensured that Tesla remained an independent brand until it produced an electric car that appealed to the mainstream market.
Spokespeople for Google and Tesla did not immediately respond to a request for comment.
When the two companies were close to inking the deal, Model S sales finally began to take off, and Tesla squeaked out an $11 million profit in the first quarter of 2013. No longer fearing bankruptcy, Musk called off the deal with Google.
The two tech firms may soon be adversaries as Google expands its own ambitions in the world of driverless electric cars.