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Rumor: Apple buying Tesla
- Thread starter Steph
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- Tesla Inc.
Clprenz
Member
I think this is a possibility. I don't think Apple is trying to design/make their own cars... They may be looking into autonomous tech.
I think in the next couple months Apple will buy Mobileye (MBLY) Which would cost them about $7bn at least. - seems like the typical lucrative Apple business plan.
I think in the next couple months Apple will buy Mobileye (MBLY) Which would cost them about $7bn at least. - seems like the typical lucrative Apple business plan.
voyager
Active Member
Why would Apple want to take such a risk, except maybe for having a big war chest?
Apple: Rumors of EV to Challenge Tesla or Buying Tesla - Page 10
I am an APPL shareholder and I definitely do not want it to buy TSLA. Bad idea for both parties.
muleferg
Active Member
(drifting off topic, sorry...)
Mine either... But I wish they would make the contacts / phone app work in landscape mode.
Safari, email, messages work in landscape mode, but the Phone app doesn't.
I jokingly think it must take a board action to make any changes to the phone app since it is the 'core' of their bread and butter.
If someone broke the ability to place/receive calls then it would be disaster. But still, I mount the phone in my car in landscape mode for nav/maps & such, and it sucks when an incoming call comes in sideways.
Mine either... But I wish they would make the contacts / phone app work in landscape mode.
Safari, email, messages work in landscape mode, but the Phone app doesn't.
I jokingly think it must take a board action to make any changes to the phone app since it is the 'core' of their bread and butter.
If someone broke the ability to place/receive calls then it would be disaster. But still, I mount the phone in my car in landscape mode for nav/maps & such, and it sucks when an incoming call comes in sideways.
Apple Needs to Buy Tesla! Why ? Will Elon Sell ? How could it be structured ?
IMO, Apple will be missing a very important inflection point in the auto, EV and autonomous driving/ride sharing industries, IF Apple does NOT make some key decisions now !
1. The window of opportunity to launch an EV for the masses is now max 2-3 years away.
2. Apple's in-house Titan project will NOT get it done, or allow Apple to launch within this time window of opportunity.
3. Given Apple's size, market cap, growth rate, and new industries it can enter, Financial Services has not worked in a huge way that will contribute to billions in revenue anytime soon! The wearables market ( watch and health within it) also has not worked in a huge way for Apple yet!
4. The auto and related industries is one of the really big market pies that is ready for innovation in both hardware and software. BUT, critically it is ALSO different ! Highly doubtful sub- contracting assembly as in phones, iPads etc will ever work with cars. Apple will need both manufacturing expertise, and manufacturing capacity and footprint for a global effort.
5. A JV with the likes of a BMW is definitely AN option , but what's in it for BMW? And, they will have to share the market and revenues, and also solve the issue of branding and come up with an answer for battery supply for a mass market product line of EV's. And while this is in progress in such a scenario, what happens to BMW's core ICE based business and dealer base....let alone the balance sheet and current P&L and cash flow for BMW !!! Apple will not have to deal with a legacy ICE business or resolve any current branding issues, compared to potential JV partner like BMW.
6. Just like GOOG, Apple has the opportunity to restructure the corporation like the GOOG/ Alphabet organization structure. This would then allow Apple to do an acquisition and give free rein to another CEO within Apple ( if, say TSLA auto was acquired ).
7. Will Elon sell ? IF so, will he sell both Tesla Motors automotive AND Tesla Energy. Will Apple want both ? Will the purchase price be TOO high for both ?
8. All of the above issues/ questions IMO, has to be seriously considered by Apple NOW !
9. IF Apple does decide to try to work a deal with Elon then will GOOG ( given the close personal relationship between Elon and Larry Page ) generate a competitive strategic situation for GOOG. After all, it's not like there are other ready made potential acquisitions with production experience and capacity, on the cusp of going mass market with EV's and EV batteries.
10. Elon has said that he will NOT sell any shares and that he will be the LAST one to sell. Given this, the only way Elon can monetize his ownership of Tesla is through a sale to Apple or Google, or some other auto industry buyer.
All of the above issues are of strategic importance to both Apple and Google, and IMO the time to decide is within the next 12 months.
IMO, Apple will be missing a very important inflection point in the auto, EV and autonomous driving/ride sharing industries, IF Apple does NOT make some key decisions now !
1. The window of opportunity to launch an EV for the masses is now max 2-3 years away.
2. Apple's in-house Titan project will NOT get it done, or allow Apple to launch within this time window of opportunity.
3. Given Apple's size, market cap, growth rate, and new industries it can enter, Financial Services has not worked in a huge way that will contribute to billions in revenue anytime soon! The wearables market ( watch and health within it) also has not worked in a huge way for Apple yet!
4. The auto and related industries is one of the really big market pies that is ready for innovation in both hardware and software. BUT, critically it is ALSO different ! Highly doubtful sub- contracting assembly as in phones, iPads etc will ever work with cars. Apple will need both manufacturing expertise, and manufacturing capacity and footprint for a global effort.
5. A JV with the likes of a BMW is definitely AN option , but what's in it for BMW? And, they will have to share the market and revenues, and also solve the issue of branding and come up with an answer for battery supply for a mass market product line of EV's. And while this is in progress in such a scenario, what happens to BMW's core ICE based business and dealer base....let alone the balance sheet and current P&L and cash flow for BMW !!! Apple will not have to deal with a legacy ICE business or resolve any current branding issues, compared to potential JV partner like BMW.
6. Just like GOOG, Apple has the opportunity to restructure the corporation like the GOOG/ Alphabet organization structure. This would then allow Apple to do an acquisition and give free rein to another CEO within Apple ( if, say TSLA auto was acquired ).
7. Will Elon sell ? IF so, will he sell both Tesla Motors automotive AND Tesla Energy. Will Apple want both ? Will the purchase price be TOO high for both ?
8. All of the above issues/ questions IMO, has to be seriously considered by Apple NOW !
9. IF Apple does decide to try to work a deal with Elon then will GOOG ( given the close personal relationship between Elon and Larry Page ) generate a competitive strategic situation for GOOG. After all, it's not like there are other ready made potential acquisitions with production experience and capacity, on the cusp of going mass market with EV's and EV batteries.
10. Elon has said that he will NOT sell any shares and that he will be the LAST one to sell. Given this, the only way Elon can monetize his ownership of Tesla is through a sale to Apple or Google, or some other auto industry buyer.
All of the above issues are of strategic importance to both Apple and Google, and IMO the time to decide is within the next 12 months.
Apple Needs to Buy Tesla! Why ? Will Elon Sell ? How could it be structured ?
This has been discussed endlessly in multiple threads. Here's just one of them: Rumor: Apple buying Tesla
This has been discussed endlessly in multiple threads. Here's just one of them: Rumor: Apple buying Tesla
Ok, that's fine. Thanks !
However, are you suggesting that since in your opinion, it's been " discussed endlessly " that it should no longer be discussed or that further discussion of it is pointless or a waste ??
The fact is that with the head of Apple's Titan now leaving, and GM 's Bolt unveiling and 200 mile range ( unclear under what scenario ) , Apple can now no longer wait to launch their own branded car in 2019 or later .
So, the situational dynamics have changed meaningfully and Apple may be on the crossroads of continuing with their past strategy or making a course correction.
In addition, the whole Alphabet reorg also has some implications for how Apple could also manage their build vs buy decision,
bonnie
I play a nice person on twitter.
I don't think he's saying not to discuss it further. But it is helpful when discussions continue in existing threads. That way a lot of information isn't repeated & continuity is maintained.
Thank you Bonnie.
@Quant, I am in no way saying that this topic should not be discussed. I am saying that there is no reason to start a brand new thread when there are multiple existing threads on the same topic.
And as you can see, your post has been merged with a very lengthy existing topic on the issue of whether or not Apple should buy Tesla and what the likelihood of it happening is.
So, carry on...
@Quant, I am in no way saying that this topic should not be discussed. I am saying that there is no reason to start a brand new thread when there are multiple existing threads on the same topic.
And as you can see, your post has been merged with a very lengthy existing topic on the issue of whether or not Apple should buy Tesla and what the likelihood of it happening is.
So, carry on...
Sure, I agree it's fine to add it to an existing thread. I hadn't seen this thread pop up recently, so I was unaware of it.
However, in the business world ( say at a meeting ) , when someone says something has been discussed endlessly, they are indeed suggesting that the discussion needs to come to an end. Oftentimes, it also is suggestive that someone needs to make a decision and move on from the discussion stage. And , sometimes it is a sign of exasperation.
Just moving to an existing thread, IMO , does not equate or suggest that something has been discussed endlessly.
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Ok, thanks for the clarification. Much appreciated. Also, suggest this thread or some other appropriate alternative thread, be moved to Investor Discussions, where it is, IMO, a better fit relative to the audience.
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Only that :
1. Apple has no actual car assembly production facilities yet ( they have not bought any production equipment ).
2. They have not yet announced any outsourcing or JV deal for production yet. Any deal with BMW would have to be annouced because both the unionized German factory workers would require it ( and how brand management would work between Apple and BMW in such a hypothetical scenario ) and the dealer network would go bananas if BMW Production went the direct sales route.
3. No EV battery in house production capacity or plans underway for production and no EV battery deal announced yet.
All of these are about 3 year lead time deals. Panasonic is not going to supply batteries to them. And , it looks like LG Chem is now booked up.
So, that' gives us enough to work with.....I think. 2019 or later deliveries , at best. Time Window of opportunity closing fast.
mrElbe
Active Member
I hope that Tesla stays independent. If Apple acquires Tesla, manufacturing will be moved off shore and I wouldn't put it past them to change the tire valves to a proprietary design so that you would have to buy air from the iTunes store and get it pumped in at the Apple store.
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