We all know Google has been working on self-driving cars for a while, but the company’s presence in the car industry could have been much greater if their plans from 2013 had gone through. According to Bloomberg Google and Tesla Motors came pretty close to a deal which would have ended with Google acquiring the car company.
Bloomberg reports that the deal was in its late stages with Google buying out the company for it’s full value of $6 billion. On top of that Google would have paid an extra $5 billion to pay off withstanding expenses from warehousing and manufacturing. The deal also allowed Elon Musk to continue to run Tesla for at least another 8 years (or until they released a third generation vehicle). In all honesty, it was a pretty good deal for both ends. At the time Tesla was struggling to sell enough cars to turn a profit. But then, all of the sudden, they started selling a lot more cars.
They sold so many cars in a short time that they quickly turned a modest profit and that hasn’t slowed down yet. The company has since paid off it’s $465 million loan from the US Department of Energy and talks with Google have come to a stand still.
But what would have happened if the deal had gone through? To state it briefly, the largest consumer technology company in the world would have had control of a company who was already creating some of the best electric cars on the road. That would have easily shaken up the car industry and had other car companies such as Ford, Chevrolet and more in a panic.
Regardless of that deal, Tesla and Google still have a good relationship and we could still one day see something come of that relationship.Source: Bloomberg