Industry gurus predict that if Google makes up its mind and use some of its hidden fortunes, it can actually pay Tesla a 100 percent premium to its existing valuation for a total buyout.
In layman's terms, that kind of premium will price Tesla's stock at $1,500 a share -- and its actual market value skyrocketing to $280 billion.
Market insiders said Google will need to write a check to the tune of $270 billion to acquire Tesla. That is over 25 percent of Alphabet's current market value.
The electric vehicle giant has burst into the scene as the hottest stock on Wall Street so far this year. With almost 100 percent increases year-to-date, the company's stock is becoming the favorite of capitalists.
Tesla has silenced its detractors as investors are now betting on its solid performance courtesy of its impressive 2019 fourth quarter figures.
Right now, word is out on the virtual streets that tech empire Google will be buying out Tesla, an industry combination seen by analysts to create a firestorm in the coming years.
Just last month, the online search behemoth stamped its class by hitting the one trillion-dollar mark, placing the company in the same room as Apple and Microsoft.
With the recent price explosion for its stock, Tesla's market value has climbed to more than $140 billion, which is more than the total valuations of auto makers like General Motors, Ford, and Chrysler.
The Palo Alto, CA-based company also has the technological wherewithal blended with its electric car ingenuity which takes it far ahead in the competition.
Based on a report by Trefis Forecast, a deal between Google and Tesla can make the auto giant's total valuations to $1.5 trillion, which means that Tesla will be 10 times its actual worth today.
Tesla has vowed to roll out half million cars by end of the year. This proves the growing strength of its production. With this growth rate, Tesla deliveries will rise to 2.7 million units by 2025, analysts said.
As for Google, its valuations are pegged past the $1 trillion chart with more than $120 billion in liquid cash and free cash reserves of $20 billion annually.
Meanwhile -- and interestingly enough -- all this could be a far-fetched idea. According to CCN.com author and analyst Kiril Nikolaev, while these narratives helped lift Tesla to its lofty position righ now, the stock now needs a powerful stimulant "to keep the party going."
Unfortunately, Nikolaev stressed, rumors that Tesla will be bought by Google seems to be a "desperate attempt to keep retail investors bullish."
