Rumor: Apple buying Tesla

[Steph]

Actually, it would be a brilliant move for Apple to buy Tesla, as well as SpaceX and Solar City. Apple has a couple of looming problems. First is their CEO is an able administrator and really an accomplished executive. But he is not an visionary leader. The deal will be to buy all three companies and get Elon Musk to run the whole mashup.

The more pressing problem is not leadership. It is the law of big numbers. Apple had 151 BILLION in revenues last year. And year over year growth of 95% which is very attractive to investors. They value growth more than anything else. When you have a ten million dollar company, and grow at 100% per year, you are faced with the daunting task of finding $10 million in new business. But when you have $151 BILLION in revenues, how do you grow 100% per year???? The law of big numbers kind of quashes you.

You cannot INNOVATE $150 billion in new business. You have to acquire it. Now what would Apple acquire in any related space that could move the needle on those kind of revenues. You can conjecture all you want, all your ideas will lead immediately to anti-trust hearings on a global scale. Microsoft, Google, AT&T? Nokia, Motorola? None of it would work at all.

But the U.S. auto market is 15 million cars a year. Apple has NO nexus there at all. None. Nada. They could buy any automobile manufacturer without a whisper, and gain entree to a half a TRILLION dollar market.

The same with solar. THere is just no nexus. An industry largely on its ass shredded by Chinese competition, with one exception. Solar City - your Supercharge center as it so happens. Unlimited growth, and no anti-trust claim is even possible.

And SpaceX. An iRocket? How about an iStation? to go with your iCar? and your iRoof?

Think you'll be opposed to all of this? How about trading 5 shares of Tesla for one share of Apple? $150 for $600 and valuing your stock at four times its current level, but you get to KEEP it as Apple stock.

Why would Elon Musk do this? He gets to run the whole show. Of course Timothy Cook does just what he does now, only under the auspices of Elon Musk. But Elon gets a $100 BILLION CASH HOARD Apple is sitting on right now, with NO CLUE what to do with it. It's actually invested in coal, concrete trucks, and other nonsense at the moment largely. Elon can tap $100 billion cash to move Apple into new markets such as AUTOMOBILES, Solar Installations, and Orbital Delivery. As Buzz LIghtyear says, TO INFINITI.....AND BEYOND!

It's all laid out here. .http://blog.evtv.me/2012/07/the-cold-weather-of-july-in-cape-girardeau/?goback=%2Egde_4107787_member_132193871

And that's where you heard it first. Actually Nova Mining curiously was how you heard it first. BUt I think it's going to happen.

Yeah! That would be a kick-ass company!

iMars

 

[Citizen-T]

No Apple shareholders are not going to object to this deal. Oddly, the resistance will come from the Tesla side. I'm not sure Toyota and Daimler will be so enthusiastic about a new car company with the buzz and a hundred billion in the sock on the block,

Another good point, and this one might end the argument. Because, as I understand it, when Daimler invested in Tesla, they also bought the right to first dibs on Tesla should another company want to buy it. If they would feel threatened by a Apple/Tesla merger, I'm sure they would exercise that right and buy Tesla themselves.

 

[Mile Erlic]

Another good point, and this one might end the argument. Because, as I understand it, when Daimler invested in Tesla, they also bought the right to first dibs on Tesla should another company want to buy it. If they would feel threatened by a Apple/Tesla merger, I'm sure they would exercise that right and buy Tesla themselves.

Does Daimler have first right of refusal? If so, I don't think Daimler could raise enough money to buy Tesla. Daimler Market cap is about $47Billion. Could they raise $10Bil, because I don't think Musk would sell for less, but probably more.

 

[vfx]

I'm in.

Ijet

 

[bonnie]

iX.

extra characters

 

[Zextraterrestrial]

extra characters

clever

 

[daniel]

Actually, it would be a brilliant move for Apple to buy Tesla...

Before reading your two posts I was thinking: "No way. Elon won't sell." Now you've convinced me. I'm not convinced that any of this will happen. But I'm convinced that it would be great. The new factor for me is your idea that Elon would run the whole shebang.

But I don't understand enough about business or mergers or buyouts to critique your analysis. But Elon with all that cash and market clout would be fabulous.

What I don't really get is why Apple shareholders would agree to give Tesla shareholders one $600 share for one $32 share. But whatever the exchange is, it sounds great. I think what I would not like is a buy-out where I get cash for my shares rather than stock in the new combined company.

Somehow, I think this is all extremely unlikely. But I cannot make a reasoned argument. I just don't see Apple turning over control to an outsider, or Elon selling without keeping control. And here's a point: Right now, Elon owns enough shares to control the company. Not just run it as CEO, but control it. Even if Apple paid one share of AAPL for one of TSLA, and even if Apple made Elon CEO, Elon would lose control at the shareholder level. He could be voted out. I don't see him agreeing to that.

 

[gg_got_a_tesla]

Can this not work out as the Disney-Pixar marriage did?! Steve Jobs sold Pixar to Disney with the express agreement that the Pixar maestro, John Lasseter, will run all of the combined animation division. So, if Elon's given free rein over his properties while under the Apple umbrella (with Cook as CEO still), it might work.

It comes down to whether Apple sees itself as a 'computer' (well, digital media too, I suppose) company still or is it willing to become more of a conglomerate like a GE, a Hyundai, a Tata or a Sony?!

 

[jerry33]

Given the bean-counters that are now in charge of Apple, I'd think Apple buying Tesla would be horrible. Telsa buying Apple (in a few years) on the other hand would really help Apple.

 

[Uncle Ron]

EDIT,,

 

[Yelmurc]

Actually, it would be a brilliant move for Apple to buy Tesla, as well as SpaceX and Solar City. Apple has a couple of looming problems. First is their CEO is an able administrator and really an accomplished executive. But he is not an visionary leader. The deal will be to buy all three companies and get Elon Musk to run the whole mashup.

The more pressing problem is not leadership. It is the law of big numbers. Apple had 151 BILLION in revenues last year. And year over year growth of 95% which is very attractive to investors. They value growth more than anything else. When you have a ten million dollar company, and grow at 100% per year, you are faced with the daunting task of finding $10 million in new business. But when you have $151 BILLION in revenues, how do you grow 100% per year???? The law of big numbers kind of quashes you.

You cannot INNOVATE $150 billion in new business. You have to acquire it. Now what would Apple acquire in any related space that could move the needle on those kind of revenues. You can conjecture all you want, all your ideas will lead immediately to anti-trust hearings on a global scale. Microsoft, Google, AT&T? Nokia, Motorola? None of it would work at all.

But the U.S. auto market is 15 million cars a year. Apple has NO nexus there at all. None. Nada. They could buy any automobile manufacturer without a whisper, and gain entree to a half a TRILLION dollar market.

The same with solar. THere is just no nexus. An industry largely on its ass shredded by Chinese competition, with one exception. Solar City - your Supercharge center as it so happens. Unlimited growth, and no anti-trust claim is even possible.

And SpaceX. An iRocket? How about an iStation? to go with your iCar? and your iRoof?

Think you'll be opposed to all of this? How about trading 5 shares of Tesla for one share of Apple? $150 for $600 and valuing your stock at four times its current level, but you get to KEEP it as Apple stock.

Why would Elon Musk do this? He gets to run the whole show. Of course Timothy Cook does just what he does now, only under the auspices of Elon Musk. But Elon gets a $100 BILLION CASH HOARD Apple is sitting on right now, with NO CLUE what to do with it. It's actually invested in coal, concrete trucks, and other nonsense at the moment largely. Elon can tap $100 billion cash to move Apple into new markets such as AUTOMOBILES, Solar Installations, and Orbital Delivery. As Buzz LIghtyear says, TO INFINITI.....AND BEYOND!

It's all laid out here. .http://blog.evtv.me/2012/07/the-cold-weather-of-july-in-cape-girardeau/?goback=%2Egde_4107787_member_132193871

And that's where you heard it first. Actually Nova Mining curiously was how you heard it first. BUt I think it's going to happen.

I agree that Tim Cook is more of a administrator than a visionary. But Apple does not have a track record of buying into new markets. Most of their acqusitions have always been to complement their own products. You could argue that Tesla is more of a electronic device than a traditional vehicle I still don't think its anything Apple wants to get into. But who knows they may surprise me with 110 Billion in cash buying Tesla would be a single quarter setback they'd remake what money they spent on Tesla within the next quarter.

I will say the main thing Elon Musk and Steve Jobs have in common is they both have a ability to show us the future.

And that is always exciting.

 

[brianman]

Management "details" aside...

It would be a hell of an interesting ride if they considered Tesla a good place to park capital.

 

[markwj]

would be a hell of an interesting ride if they considered Tesla a good place to park capital.

The vast majority of Apple's capital is offshore. They'd be taxed to bring it back (which is why they, and others, are pushing for that amnesty).

 

[smoothoperator]

Management "details" aside...

It would be a hell of an interesting ride if they considered Tesla a good place to park capital.

Apple would benefit Fisker a lot more than Tesla. I could see Apple wanting to purchase a company pre-ipo where they could get it for a low valuation. More value with this play than Tesla. Plus Fisker could use the help!

 

[brianman]

Apple would benefit Fisker a lot more than Tesla. I could see Apple wanting to purchase a company pre-ipo where they could get it for a low valuation. More value with this play than Tesla. Plus Fisker could use the help!

That's assuming you believe Fisker has a future (without radical shift in direction/mission).

 

[smoothoperator]

That's assuming you believe Fisker has a future (without radical shift in direction/mission).

If Fisker fails at building cars they will just become a design company. I do not think they can fail completely, just because the track record is there (with respect to car designs) It is possible they fail as a car manufacturer. If the glitches were fixed and UI improved (both apple specialties), I think they can be a pretty valuable company.

 

[brianman]

If Fisker fails at building cars they will just become a design company. I do not think they can fail completely, just because the track record is there (with respect to car designs) It is possible they fail as a car manufacturer. If the glitches were fixed and UI improved (both apple specialties), I think they can be a pretty valuable company.

Elon's fireside body language and actual language suggested he's not so confident.

 

[smoothoperator]

Elon's fireside body language and actual language suggested he's not so confident.

He also said he would not be ceding control of Tesla anytime soon (which also means he would not sell to Apple)

 

[PhatCat]

.. Apple buying Tesla would be horrible. Telsa buying Apple (in a few years) on the other hand would really help Apple.

With a market cap of 564 billion, it's hard to see anyone buying Apple. With a market cap of ~ 3 billion, Tesla has quite a way to go.

 

[jerry33]

With a market cap of 564 billion, it's hard to see anyone buying Apple. With a market cap of ~ 3 billion, Tesla has quite a way to go.

I wasn't commenting on the practicality or possibility of it--just that it would help Apple as most of the innovators appear to be gone and only the bean counters are left:smile: