During Tesla’s brief tease of taking the company private, industry watchers frequently mentioned Apple as a potential partner.
Such a scenario would be one of the buzziest, headline-grabbing tech events one could conceive. But, would it be good biz?
Venture capitalist and longtime Apple analyst Gene Munster chimed in on a Tesla/Apple deal this week in a blog post.
Given that both companies have strengths in hardware, software, and A.I., Munster seems to believe that collaboration between the two companies would result in an exceptional product.
“Imagine all of the things you love about your iPhone, perfectly integrated with all the things Tesla owners rave about,” Munster wrote. “The two tech giants could take over the auto industry over the next 20 years as consumers embrace electric vehicles and automation.”
While there are clear synergies, Munster said merging the design culture of both companies may be what prevents a deal.
“If Tesla successfully turns the corner to profitability, the combination of the two companies is nothing more than a fairy tale, as both companies would want to retain design control,” Munster wrote. “Our bet is that Tesla is successful and reaches sustained profitability in a year.”
Munster said Tesla might agree to a $10 billion cash investment from Apple if Apple were to accept non-voting shares and have no operational influence. And, Apple would want some influence on Tesla in order to feel confident they could generate operational benefits.
Read Munster’s full note here.