Elon Musk entered into an accord to sell Tesla Motors Inc (NASDAQ:TSLA) to Google Inc (NASDAQ:GOOGL). However, the deal never came through as per the excerpts of the new book “Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic Future”, which is slated to be unveiled soon.
Following the rumors that the Electric version of the cars does not compete, with various luxury models of cars due to glitch, the order book of Tesla Model S collapsed in 2013. With capital left for running the factory just for two weeks, Tesla was closed down. The company was looking for a bailout.
Ashlee Vance, a reporter at Bloomberg, mentioned in his soon to the unveiled book that Musk and Lary Page, CEO of Google negotiated a sale of Tesla Motors to Google in the year 2013. This is according to latest information published on Monday in the Bloomberg Business week citing the book.
As per the terms of the deal, the company was valued at $6 billion. The deal also included additional spending of $5 billion for the expansion of Tesla Motors Plants. Musk also made it clear that he will continue as CEO of Tesla for a period of eight years or till such time third generation electric car at Tesla would be developed, and sales commenced to majority car buyers.
According to Vance, Google was obligated to run Tesla Motors till the new car hits the road. Both Musk and Page negotiated general terms of the deal and the attorneys of both the firms initiated steps to clinch the deal.
According to Vance, the demands set by Musk kept the deal far from closing.
The sales of Tesla Motors picked up after the negotiation. The company posted handsome sales of $562 million. The company has reported a net profit of $11 million in 1Q2013.
Musk then conveyed thanks to Larry Page.
