Tesla shares soar amid rumors of Apple acquisition

Article by Christian A., on February 19, 2014

Shares of Tesla Motors Inc. traded at a record high as speculations rose on the nature of a 2013 meeting between the chief executive Elon Musk and Adrian Perica, Apple Inc.'s head of mergers and acquisitions, four analysts said. San Francisco Chronicle reported on Feb. 16, citing a person privy with the matter, that Musk met with Perica in early 2013.

Driven by this report, Tesla’s shares rose to $206 before closing at $203.70. Musk told Bloomberg in an interview in May 2013 that he was not planning to step away from Tesla for "several years" and that an acquisition by another carmaker wasn't a probability.

He, however, remarked that being acquired is "one of the possible outcomes," adding that a potential buyer would have to have a big cash position.

He declined to speculate on potential suitors, but admitted that Apple was a company with tons of cash. James Albertine, an analyst with Stifel Nicolaus & Co., told Bloomberg that there is no indication" an acquisition is a serious possibility now.

Albertine as well as analysts Craig Irwin (Wedbush Securities), Andrea James (Dougherty & Co.), and Dan Galves (Deutsche Bank), said that the Apple speculation was partially responsible for the Tesla’s stock gain.

Irwin quipped that investors have an "expectation of positives on the upcoming conference call," where Tesla is due to discuss its quarterly results. James said the rise is an effect of the combination of "Apple speculation" and a boost in target prices for Tesla shares by other analysts.

Topics: tesla, apple, shares

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