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Analyst predicts GM will buy Tesla in 2014

There's little question that Tesla has come at the automotive industry as an outsider. But will it last as an outsider for much longer? Not if you ask Yra Harris of Praxis Trading. According to USA Today, the veteran financial analyst recently predicted on CNBC that General Motors will try to buy Tesla in 2014.
It certainly wouldn't be the first time that GM acquired another automaker. It did just that when it purchased the rights to the Hummer brand from AM General in 1999 and completed its takeover of Saab the year after. But, of course, The General has since divested from both, shutting down its Pontiac and Saturn brands in the process. Daewoo and Oldsmobile are gone too, as is Geo. Chevrolet is to be withdrawn from Europe, and over the past few years, GM has sold its minority stake in Isuzu, Subaru, Suzuki and PSA Peugeot-Citroën as well.
Of course, none of these are dedicated electric carmakers like Tesla is, and the Volt may not be doing as well as Detroit had initially hoped. But does that mean it's ready to start expanding its brand portfolio again? With all due respect to Mr. Harris, somehow we doubt it - especially with Tesla currently enjoying sky-high market valuation. The company's market capitalization stands at over $18 billion - more than 100-plus times its earnings. That would make mounting a Tesla takeover a hugely risky and costly endeavor unless Wall Street tempers its stock value greatly.

Audi tops Consumer Reports' brand rankings while Tesla leads domestics at eighth

Tesla supplanted General Motors' Buick division as the top-ranked US automaker in Consumer Reports annual brand rankings, though the electric-vehicle maker finished eighth among global automakers. Buick had finished atop CR's domestic car-brand list for three years before Tesla leapfrogged it. Scores were calculated from a combination of performance, owner satisfaction, and reliability. CR noted that Buick scored big on reliability but not so high on performance, while Tesla appeared to present the opposite case. Volkswagen's Audi division repeated as the best overall brand for the second straight year, beating out VW's Porsche unit, BMW, Toyota's Lexus division, and Subaru. Kia and Mazda followed those brands, while Honda finished ninth, between Tesla and Buick. Consumer Reports took results from 31 brands. Reliability issues related to the Toyota Tacoma helped drop that Japanese automaker out of the top 10. Take a look at CR's results for its Annual Brand Report Card here. That Tesla, Audi, and Porsche placed so high is topical, given some of the issues plaguing those automakers. Audi, Porsche, and their parent VW have been coping with the effects of the diesel-emissions scandal that broke back in 2015. The scandal has cost Europe's largest automaker billions of dollars, and forced VW to put a stop-sale on diesel-powered cars in the US in late 2015. And while the Tesla Model S improved from the "worse-than-average" label CR gave it in its 2015 Annual Auto Reliability Survey, the problematic falcon-wing doors on the Tesla Model X SUV pulled that model's reliability scores lower last year. Additionally, the Model X's climate-control system and door locks have also caused issues. Toyota and Lexus finished atop CR's reliability rankings last year. Related Video:

Ohio senator with deep dealer ties proposes anti-Tesla bill

The fight against customer-direct car sales by Tesla Motors continues around the US, and the California-based company can now count dealership groups in Georgia and Ohio among its adversaries. In Ohio, Tesla has opened company-owned stores in Cincinnati and Columbus and is now fighting a state dealership association that's pushing for legislation that explicitly outlaws direct dealer-to-public sales after a lawsuit against Tesla was dismissed last week, Automotive News says. The proposed law (Senate Bill 260) would prevent any entity from selling vehicles if it "is a manufacturer, or a parent company, subsidiary, or affiliated entity of a manufacturer, applying for a license to sell or lease new or used motor vehicles at retail." Under Ohio's current laws, Tesla says its stores are perfectly legal, but clearly that would would drastically change if SB260 becomes law without some sort of provision to 'grandfather' dealers opened before the legislation passes. Ohio's dealers say Tesla threatens their network since it sets a precedent for other automakers to use the same practice. The politician behind the bill received at least $42,825 from dealership owners, employees and PACs. The politician behind the anti-Tesla bill in Ohio is Senator Tom Patton (R-Strongsville), who "received at least $42,825 from state and national auto dealership owners, employees, and political action committees (PACs) between 2002 and 2013," according to Media Trackers. His Facebook page is filling up with negative comments about his "crony capitalism" actions. Meanwhile, a Georgia exemption from that state's prohibition of automaker-to-public sales states that a company can directly sell as many as 150 zero-emissions vehicles a year, the Atlanta Business Chronicle says. Tesla sold about 500 of its Model S sedans there last year, with the rest of the cars being registered in California. The automaker is looking to expand that exemption tenfold to 1,500 vehicles. Georgia and Ohio join states such as Massachusetts, New York and Texas that have done battle with Tesla and its business model, with Texas thus far being the most formidable opponent. CEO Elon Musk said last year that he may go to the federal government to get such laws changed on a national level. That's not surprising since Tesla's preparing to start selling its Model X crossover and could unveil its cheaper EV (possibly called Model E) at the Detroit Auto Show next year.