This is what I was thinking earlier today, and it makes a lot of sense. Google would have an opportunity to enter the automobile market very quickly and use its technology on all Tesla cars. The major problem to me is that a company like Tesla only manufactures more expensive cars, and as a result Google would be targeting a small percentage of the population initially with this move.

Actually Android is a counterexample--Google doesn't control the entire Android ecosystem, and they do have to cede control to phone manufacturers, who cede control to carriers, who drag ass on innovation, which is why you can buy a brand new phone today that has a years-old version of Android running on it and loads of crapware.

Tesla doesn't have the capacity to build large numbers of cars. Even if it wanted to ramp up, it would take a long time to build a large-volume car.

GM could licence the tech and punch out 500,000 cars in no time at all. That is the difference.

Google will not want to become an auto-maker. Of that I am almost certain.

Google went from zero to making a large amount of computer hardware in a decade, partly through using the large existing contract manufacturing chain. The auto industry is not entirely different: Bosch, Rotax, ZF, etc would all design and build parts for Google...