The Never Ending Rumor: Hawaiian Holdings, Inc. (HA) and More

Charged up for sales

Which car manufacturer cannot build enough cars to meet demand, has thousands of reservations, and is looking to triple the number of models it produces over the next few years? It’s Tesla Motors Inc (NASDAQ:TSLA). This Silicon Valley car maker prides itself on defying industry convention by producing an electric car people want to drive and selling it in Apple Inc. (NASDAQ:AAPL)-esque stores located in shopping malls.

In a time where automotive giants spend billions yearly on R&D, Tesla could be an excellent takeover target for a car company looking to strongly enter the electric car segment. The names Toyota Motor Corporation (ADR) (NYSE:TM) and Daimler have both been cited as potential buyers for these manufacturer’s connections to Tesla through partnerships and stock purchases. But since Tesla is both automotive and technological, the names of Google Inc (NASDAQ:GOOG) and Apple have even been tossed out by some.

However, Tesla shareholders believe their company is capable of much more than it has been able to show so far. Many see a full line of Teslas spanning from mass production economy to high end exotics. For this reason, shareholders would demand a significant premium over the current share price to be willing to sell. Despite the rumors that pop up on Tesla, Apple, or Toyota blogs and websites, Tesla appears to want to grow by itself. After all, being different from the giants it what makes Tesla Tesla.

Company for sale

While some buyout rumors prove to be legitimate, many others are just tossed into the market and quickly dispelled by the would-be parties in the deal. Hawaiian Holdings, Blackberry, and Tesla Motors are just three examples of companies living in a perpetual state of a soon-to-be taken over. While all three possess real characteristics that make them attractive for a buyout, investors should remain cautious surrounding buyout rumors of these three companies. But beyond the buyout, investors need to assess the companies themselves and determine if they should be a part of their portfolio, takeover or not.

The article The Never Ending Rumor originally appeared on Fool.com and is written by Alexander MacLennan.

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