Rumor: Apple buying Tesla

[JRP3]

Apple Automobile Company :wink:

 

[ScepticMatt]

Apple Automobile Company :wink:

lol

Agents were assured that its $1150 Apple 8 model was "a car which you can sell!". Sadly for the company, it would seem that the public did not buy.

 

[Auzie]

Can you shed some more light on the basis of this rumor, credibilty and so on?

Very credible. Heard it from a former engineer who heard it from a current engineer, who said that Elon called an all-hands meeting about it. That's all I know.

Thanks for sharing TSLAROX. Decisions like these (mergers/acquisitions) are in the cooking for considerable time before the decisions are made and publicised.

If there are any moves towards takeover/merging two businesses, I am an appreciative listener, as waiting for the news to come out takes too long and it is too late to act once news are out. Any indication of meeting timing?

My take on the merger/takeover is that it only makes sense if both parties benefit from the exchange. There needs to be some synergy that merger brings about to both businesses. Each business needs to bring something to the table that other business wants/needs.

Benefit to Apple (Tesla brings to the table): New attractive business/revenue stream, attractive way to deploy cash (the opportunity to enter automotive / energy storage business), opportunity to work on relevant software/hardware developments (autopilot), great Tesla brand;

Benefit to Tesla (Apple brings to the table): Cash - provides security, protection in case of a macroeconomic downturn, supply chain expertise, organization support structure that Tesla can tap into, no need to build its own.

The strongest synergy drivers imo are Apple's cash and supply chain expertise and Tesla's brand and the opportunity to enter automotive / energy storage business.

Cash: Tesla may be able to raise cash without Apple if it needs cash, in present circumstances. In changed macroeconomic circumstances, Tesla may be at risk as it is leveraged. The favourable macroeconomic conditions may persist for the next few years. It is difficult to see further than that. In more distant future anything is possible, some yet unforeseen factors may change the outlook.

Supply chain: Tesla seems to have some weakness there and might benefit from Apple's expertise, or may wish to build its own by poaching Apple's expertise.

In the exchange, Tesla may have to give away some of its independence as it is the smaller partner. Imo that would be a significant unfavourable trade-off.

 

[Asphalt&Battery]

Maybe the apple stickers people put on their cars that comes with all their gizmos is a sign of things to come...










Not

 

[yobigd20]

I've found Apple products to be mostly solid and trouble-free.

My iPhone 6 Plus crashes and resets about a dozen times a day...

 

[ecarfan]

And Apple can't fix that or replace it? If I had that problem I would just get it replaced. I've always had great service from Apple.

My wife and I have each owned an iPhone 6+ for a few months now. Zero crashes, zero lockups, zero problems. We have tons of apps installed and use them constantly.

We've owned iPhones and iPads for years. I can't recall the last time one of them crashed. I've gone for over a year without an OSX problem on my MacBook Air. And I rarely do a hard reboot as Apple recommends to do regularly.

 

[liuping]

My iPhone 6 Plus crashes and resets about a dozen times a day...

That is absolutely not normal, unless you jail broke it.

Take it to a Genius Bar. They can check the logs. It may be a hardware issue, or some bad software.

My iPhone 6+ has not crashed once since I got it when they first came out.

 

[Auzie]

As this whole rumour is started by TESLAROX, the credibility of what is stated largely rests on TESLAROX's credibility, as anyone can sign up to this forum and start posting.

Few examples of past TESLAROX's posts:

12-8-2014 Former Tesla engineer confirms they are currently working on AWD Supercar and truck.
15-9-2014 I'm betting we'll see the AWD Model S supercar in stores before we see the X. At a much higher price point with far fewer cars sold, this would allow Tesla to do some real-world testing of the front motor before releasing AWD in huge volume with the X.

​

 

[JRP3]

Reviving this thread to report a new rumor: Apple is actively working on an EV to compete with Model S. They have also poached some Tesla employees.

Thanks for sharing TSLAROX. Decisions like these (mergers/acquisitions) are in the cooking for considerable time before the decisions are made and publicised.

If there are any moves towards takeover/merging two businesses, I am an appreciative listener, as waiting for the news to come out takes too long and it is too late to act once news are out. Any indication of meeting timing?

TSLAROX did not indicate a takeover/merger or meeting.

 

[Auzie]

TSLAROX did not indicate a takeover/merger or meeting.

All discussion here is a speculation. I was just curious about the meeting that TESLAROX mentioned.

Can you shed some more light on the basis of this rumor, credibilty and so on?

Very credible. Heard it from a former engineer who heard it from a current engineer, who said that Elon called an all-hands meeting about it. That's all I know.

 

[TSLAopt]

Actually, Foxconn is working on their own EV: iPhone manufacturer Foxconn to sell $15K electric car - CSMonitor.com

TSLAROX,
Do you think Tesla will show us anything at North American Auto Show?

 

[tezco]

Reviving this thread to report a new rumor: Apple is actively working on an EV to compete with Model S. They have also poached some Tesla employees....

Boy, I wouldn't want to be a johnny-come-lately in this market ,with the traditional automakers beginning to develop momentum, particularly if I had zero experience building cars. Setting up your heavy manufacturing in China can also prove problematic--just ask Cessna and Cirrus. But, hey, if you wanted to pick up some stock in both companies on the cheap--a rumor such as this might help.

 

[drinkerofkoolaid]

If Apple is partnering with Tesla, It is far more likely Apple is investing in Tesla's supply chain rather than trying to buy Tesla. Apple may not be required to disclose certain types of investment in Tesla. One of Apple's many strengths is its supply chain management. Tesla's Electric Vehicles and Apple's computers/ iPhones have more in common than many people realize.

 

[TSLAROX]

TSLAROX,
Do you think Tesla will show us anything at North American Auto Show?

No idea. Sorry.

 

[Muskol]

Reviving this thread to report a new rumor: Apple is actively working on an EV to compete with Model S. They have also poached some Tesla employees.

One one hand, this is good news for the advancement of EVs--it does seem that the tech companies will ultimately be the ones to make this happen, rather than traditional automakers.

On the other, my fear is that neither Apple nor Tesla will cooperate in terms of creating a universal charging infrastructure, that both will maintain their own proprietary networks. Although Tesla is clearly ahead in the race, Apple has the capital to make this happen fast.

Article from Business Insider seems to support this rumour:

Apple employee: We're working on something that will 'give Tesla a run for its money' - Yahoo Finance

 

[hockeythug]

Article from Business Insider seems to support this rumour:

Apple employee: We're working on something that will 'give Tesla a run for its money' - Yahoo Finance

Strange timing the "source" reached out so close to earnings.

 

[djplong]

Where is Apple hiding the factory? The batteries? ANY of the know-how to put out a *CAR*? Look what it took for Tesla to put out the Roadster.

And I'm supposed to believe that Apple has a PRAYER at this? They haven't manufactured anything bigger than a BREADBOX (ok, some of their screens are bigger, but lots thinner).

Don't get me wrong - I *like* Apple. I have an iPhone 6 Plus as does my wife and I got her an iPad Air 2 for Christmas. But to think a consumer electronics maker could just "put out a car"? Who WRITES this stuff?

 

[sandpiper]

Where is Apple hiding the factory? The batteries? ANY of the know-how to put out a *CAR*? Look what it took for Tesla to put out the Roadster.

And I'm supposed to believe that Apple has a PRAYER at this? They haven't manufactured anything bigger than a BREADBOX (ok, some of their screens are bigger, but lots thinner).

Don't get me wrong - I *like* Apple. I have an iPhone 6 Plus as does my wife and I got her an iPad Air 2 for Christmas. But to think a consumer electronics maker could just "put out a car"? Who WRITES this stuff?

I suspect they're only talking about the "connected car" aspect of the Tesla. There is no way that Apple is coming out with a car.

 

[SteveG3]

Or this could be simply made up FUD from shorts out the week of earnings and 2015 guidance to try to help their positions. A claim of an email from one unnamed employee? meh.

In in the infamous Jim Cramer video where he talked about hedge fund tactic of pushing hard to get made up bs into media coverage he specifically mentioned making stuff up
about Apple as appealing because they don't comment on rumors.

Time me will tell, but for now, meh.

 

[anticitizen13.7]

Would there be any technological compatibility issues with Apple buying Tesla?

Apple devices run OS X and iOS, which are Apple's flavors of *nix. Tesla uses Linux.

If Apple were to buy Tesla, would Apple eventually try to make all Teslas run OS X? What would that do for backwards compatibility and future software updates?