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Tesla and Gm Proposed Merger

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Tesla and Gm Proposed Merger
FINC 664W
University of Redlands
Capstone Paper
General Motors and Tesla Merger
Juan Carrillo, Shane Cheek, Jeffrey Haynes, and Peter Delacruz
February 23, 2013

Dear Fellow Shareholders:

A meeting of Shareholders is scheduled for Saturday, February 23, 2013. Enclosed is a copy of our proxy statement.
At this meeting of shareholders, the Board of Directors will be seeking approval to acquire Tesla Motors. The Board of Directors believes that this merger will provide General Motors revenue, growth, and competitive edge to our existing product mix. Additional information concerning this matter is presented in the body of the proxy statement. We encourage you to review this information.
Please take a moment and sign, date, and return the enclosed form of proxy. This way your shares will be represented whether or not you are able to attend the meeting.
We would like to thank you for your attention to this matter and for your continued support.

Respectfully,

Chief Executive Officer

General Motors and Tesla Merger The General Motors-Tesla acquisition is a great opportunity to combine similar and innovative companies in the auto industry. The following report will help elucidate why we are confident that this acquisition must take place. We will provide you with detailed information in regards to our reasons and considerations why this merger must take place and how it benefits General Motors, Tesla Motors each company’s shareholders and consumers. General Motors (G.M.) acquisition of Tesla will take this company forward and position us with leading edge technology in the industry, possibly taking over Toyota at the top. G.M. can utilize Tesla’s innovation and technologies to continue to move forward with our vision to design, build, and sell the world’s best cars. Conversely, Tesla’s can utilize GM’s manufacturing facilities and distribution channels to exercise economies of scale and achieve their goals of making electric


References: About Tesla (n.d.). Retrieved February 6, 2013 from http://ir.teslamotors.com/ Akerson, Daniel (2010) Analyst Opinion, Yahoo! Finance (2013, February 15). Retrieved February 18, 2013 from http://finance.yahoo.com/q/ao?s=TSLA+Analyst+Opinion APCO (2010, November) Chappell, L. (2009). Tesla won 't use franchises; will handle sales, service. Automotive News, 84(6375), 18-18. Retrieved from http://0-search.proquest.com.books.redlands.edu/docview/219448776?accountid=14729 Folsom, Burton (1998, September 8) General Motors Company 2010 Annual Report, 2010 (2010). Retrieved February 6, 2013 from http://www.gm.com/content/dam/gmcom/COMPANY/Investors/Corporate_Governance/PDFs/StockholderInformationPDFs/Annual-Report.pdf Gordon-Bloomfield, Nikki (2012, August 10) IPO Home, Renaissance Capital (n.d.).  Retrieved February 18, 2013 from http://www.renaissancecapital.com/Tesla-Motors/ipo-TSLA.html INRETS (n.d.) Krisher, Tom (2012, August 9). GM CEO says old culture still hinders change.  Retrieved February 6, 2013 from http://www.huffingtonpost.com/huff-wires/20120809/us-general-motors-ceo-speech/ Market Watch, the Wall Street Journal (n.d.) Miller, D. (2012). Is this the first sexy green car ever? Hollywood Reporter, 418, 63-64. Retrieved from http://0-search.proquest.com.books.redlands.edu/docview/1265779692?accountid=14729 Millikin, Mike (2012, July 9) Options & Pricing (n.d.)  Retrieved February 17, 2013 from http://www.teslamotors.com/models/options Powered up: Tesla model S named 'car of the year ' by motor trend (2012) Shinal, John (2012, December 20). Tesla will need more loans to stay afloat in 2013.  Retrieved February 6, 2013 from http://www.marketwatch.com/story/tesla-will-need-more-loans-to-stay-afloat-in-2013-2012-12-20 Tesla Motors Company Overview (Summer 2011) Tesla Motors Employer Reviews (n.d.). Retrieved February 6, 2013 from http://www.indeed.com/cmp/Tesla-Motors/reviews Tesla Motors Inc Tesla Motors Stores, Galleries, and Service Centers. (n.d.)  Retrieved February 18, 2013 from http://www.teslamotors.com/findus The Economist (2011, June 30) World Health Organization - NCD Country Profiles, China (2011). Retrieved February 16, 2013 from http://www.who.int/nmh/countries/chn_en.pdf  Retrieved February 4, 2013 from http://www.gov.cn/zwgk/2012-07/09/content_2179032.htm Worthington, D www.Yahoo.com/Finance Zacks Equity Research (2012, November 8)
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