Is now the time for Apple to buy/partner with Tesla?

[commasign]

Post-Model 3 unveiling...

Tesla is sitting on an insane amount of Model 3 reservations. But without outside help, it'll fall into the same pattern of multi-year delays and slow ramp up.
Tesla has an up and running factory a stones throw away from Apple headquarters.
Apple has the cash.
Apple needs a "next new thing". Honestly, how much better can MacBook, iPhone, iPad, Apple TV, and Apple Watch get in the coming years?
Apple has some experience dealing with massive roll outs of new products (retail, marketing, support, supply chains, etc.,)
The single display UI concept of the Model 3 has Apple written all over it (I.e. Dumping the instrument cluster the same way Apple dumped previously undumpable things like removable batteries, ports, buttons).
The Tesla UI looks great but could certainly benefit from a modern CPU/GPU like the iPad Pro's A9X. And how about those gorgeous Retina displays?
The Model 3 itself has Apple written all over it. A premium, cutting edge, well packaged product, within reach of the middle class.
Apple wants its iOS in cars (I.e. App Store). While car manufacturers are starting to offer CarPlay, they also support the competitor Android. A native iOS-powered Model 3 would be a game changer for the Apple ecosystem, essentially an all new category of mobile device putting Apple years ahead of any other car or consumer electronics manufacturer.
Imagine if every Apple Store suddenly became a Tesla store too. The larger Apple stores could certainly allocate space for a full size Model 3 while the smaller Apple stores could at least have a design studio and sample colors, wheels, etc., on display.

With Tesla bringing in hundreds of thousands of Model 3 reservations, it just seems like the time is now for Apple to buy or partner with Tesla.

 

[Rockster]

I was wondering how the Model 3 unveiling would affect the thinking at Apple. Has the unparalleled enthusiasm for EV's shown Apple that they're on the right path bringing an EV to market? Or, as you observe, is this possibly rekindling the Apple/Tesla partnership thinking?

Exciting times for the technology.

 

[Raffy.Roma]

With Tesla bringing in hundreds of thousands of Model 3 reservations, it just seems like the time is now for Apple to buy or partner with Tesla.

Agree but I prefer the term "partner" rather than "buy".

 

[austinEV]

I agree Apple should want this. It is less clear that Tesla gets as much out of it. TM is probably growing as fast as they really can. Throwing billions at it and saying do it in half the time is probably running foul of the "mythical man month" stuff. Want you really want is the 20-50 really key men and women who know how to do it right working as fast as they can to bring up capacity, not 200-500 new hires.

 

[RIZE]

Apple should be a partner, Not a buyer. Sure it will be great for Apple but not for Tesla. Tesla's vision is clear. Sustainable transport for the future. Apple is 'just' one of the most valuable companies in the world.
Tesla gives away patents. Apple is not the type of company doing this. Making Apple buy Tesla will likely make Tesla a company with support optimized for Apple, making Android users less likely to buy a Tesla. I wouldn't mind a retima display tho...

 

[ecarfan]

I own APPL and my house is full of i things. But I do not want Apple to partner with Tesla or invest in it. I want Elon to have full autonomy to drive Tesla's mission. He excels when he has control.

 

[Tanquen]

God, I hope this never happens. Apple is an awful company and Jobs/Crook was/is a lying douchebag. I'm sure Crook can't wait to buy Tesla out and move everything to China and lie about the working conditions, product cost/profit and company structure so they don't have to pay any taxes. Sorry but after that 60 Minutes interview somebody needs to punch that guy in the face.

 

[boofagle]

God, I hope this never happens

Agree. I don't see a benefit for Tesla. Apple has experience making tiny phones offshore in less-than-acceptable working conditions. Much different than building a big car. Only crazy amounts of money for ramp up of giga/tooling at plant is the only reason Tesla would consider this. Possibly their retail stores but that's about it.

 

[mspohr]

I own APPL and my house is full of i things. But I do not want Apple to partner with Tesla or invest in it. I want Elon to have full autonomy to drive Tesla's mission. He excels when he has control.

I agree.
There is nothing in this for Tesla. Apple is a "closed" company that will shut off patents and make the car "iOS only".
Tesla has plenty of money and no problem raising more if needed. It does not need lots of Apple newbys running around and interfering with Tesla implementing Model 3 production.
Apple may need Tesla, but Tesla doesn't need Apple... and Apple would ruin Tesla.

 

[stopcrazypp]

Throwing billions at it and saying do it in half the time is probably running foul of the "mythical man month" stuff. Want you really want is the 20-50 really key men and women who know how to do it right working as fast as they can to bring up capacity, not 200-500 new hires.

I thought the same thing. Just throwing money and more personnel at the problem does not really help make things go faster.

And Apple is not a good fit for this project anyways. They have neither the auto expertise nor the automotive battery expertise to help. In fact, wasn't it just recently in the news that Apple had been hiring away Tesla talent for their own auto project (with rumors the project was not going well)?

Google would be a much better partner in terms of being able to help the autonomous part. However, right now what is critical for Tesla is the general auto manufacturing and battery manufacturing.

 

[Raffy.Roma]

I own APPL and my house is full of i things. But I do not want Apple to partner with Tesla or invest in it. I want Elon to have full autonomy to drive Tesla's mission. He excels when he has control.

+ 1

 

[commasign]

An analyst article in support of acquisition:

Apple should buy Tesla — and make Elon Musk CEO

 

[mspohr]

Apple would ruin Tesla. Completely different cultures. Tesla would get no benefit.

 

[TheTalkingMule]

I've hated this idea from the beginning, but Tesla is clearly inching toward a place where Elon can plan his exit. Does it make sense to keep this startup look and feel if the products have massive appeal and are beyond reproach? Would it be better to let a big pocketed parent scale things up? You have to believe Elon is open to this possibility.

Split off anything related to battery tech/charging/etc and merge that with SCTY into some new massive energy entity. Let AAPL buy the car manufacturer and scale it rapidly with their billions.

 

[mspohr]

I've hated this idea from the beginning, but Tesla is clearly inching toward a place where Elon can plan his exit. Does it make sense to keep this startup look and feel if the products have massive appeal and are beyond reproach? Would it be better to let a big pocketed parent scale things up? You have to believe Elon is open to this possibility.

Split off anything related to battery tech/charging/etc and merge that with SCTY into some new massive energy entity. Let AAPL buy the car manufacturer and scale it rapidly with their billions.

Ever heard of the mythical man month?
Throwing more money at ramp up will only increase chaos.

 

[The Blue Owl]

Ever heard of the mythical man month?
Throwing more money at ramp up will only increase chaos.

That's true in general about R&D, but not about scaling up a well-understood manufacturing process. Once you know exactly what you want to build and how, throwing money at the problem is exactly what you must do.

 

[brianman]

"Is now the time for us to block thread titles with Apple in the name?"

Sorry, I'm tired of this tired topic that keeps returning.

 

[mspohr]

That's true in general about R&D, but not about scaling up a well-understood manufacturing process. Once you know exactly what you want to build and how, throwing money at the problem is exactly what you must do.

The Model 3 manufacturing process is not "well understood". They need to invent the design of the car and the assembly line and all of the sub-assemblies that go into the car. Too much money at this point will just result in a bunch of engineers tripping over each other.
Once they have one assembly line running smoothly, then they can throw money at replicating it.

 

[The Blue Owl]

The Model 3 manufacturing process is not "well understood".

I know that, and I didn't say nor imply that it was. I suspected this "correction" was coming, but was too lazy to preempt it. I hoped my post would be taken at face value ("if... then...").

They need to invent the design of the car and the assembly line and all of the sub-assemblies that go into the car. Too much money at this point will just result in a bunch of engineers tripping over each other.
Once they have one assembly line running smoothly, then they can throw money at replicating it.

It wasn't clear to me that you were referring in particular to the phase where the Model 3 production line is still to be defined. The post you were replying to was making a general point about what a truckload of money could do for Tesla in the future (or at least, that's how I read it). My assumption was that the manufacturing process in that context would indeed be well understood.

You seem to have interpreted TheTalkingMule's post as proposing to throw money at the problem of figuring out how to build the car. Under that assumption, I agree with your mythical-month reference.

BTW, for the record, I don't think Apple buying Tesla would be a good idea.

 

[TheTalkingMule]

I'm talking post-Model 3 rollout for sure, late 2018-ish. Once Model 3 is a success, what groundbreaking work needs to be done? None really.

Sell high, let Elon move on to SpaceX, push the Gigafactory operation to SolarCity(TeslaEnergy) and call it a day. Onward and upward!