Elon Musk Had Nearly Sold Tesla To Google For $6 billion In 2013
Tough times are often inevitable in the business world. Decision making becomes arduous for businessmen when they are trialed by low profits or at worse, bankruptcy. Elon Musk, CEO Tesla Motors, was also tested by unsporting circumstances in 2013. His company was on the verge of bankruptcy so he had almost decided to sell Tesla to Google for $6 billion, reports Bloomberg.
Keeping in view Tesla’s current valuation of about $25 billion, Musk’s decision seems very appropriate. The company has gained a lot of confidence now. This was obvious when in January Musk sketched his course of action to enhance Tesla’s valuation to $700 billion. But if he had sold Tesla to Google, undoubtedly this would have expended horizons for Google in automotive space.
According to Bloomberg, Musk was very close to sign the deal with Google as he had “accepted the overall proposal and shook on the deal” after his meeting with Google co-founder and friend Larry Page.
If the deal had been accomplished, the source claims, Musk would have still been a chief of Tesla as it was purposed that the motor company will work under his control until Tesla’s third electric car was processed and was available in the market.
Google would have to spend a sum of 11 billion to complete its possession. Out of this amount, $6 billion would be paid to Tesla and amount of $5 billion was required for factory expenditures.
All of these plans go in trash as Tesla and Google couldn’t become one.
Abubaker Zahoor writes on diverse topics with special interest in innovations, tech-ethics, and inter-and intra- organizational business relationships.