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Rumors- Apple May Have Considered Purchasing Tesla

Discussion in 'TSLA Investor Discussions' started by Lump, Feb 16, 2014.

  1. ecarfan

    ecarfan Well-Known Member

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    One SF Gate journalist speculates about why Musk met with Apple's chief of acquisitions and the rumors start flying. But that is all they are, rumors.
     
  2. mrdoubleb

    mrdoubleb Active Member

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    Elon said during his last public appearance (in Norway I think), that Tesla will not be sold, period.
     
  3. DaveT

    DaveT Searcher of green pastures

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    I remember him saying something regarding that in his Europe trip. I'm not sure if it was that direct/clear though. Does anybody have the exact quote from Elon on this?
     
  4. FredTMC

    FredTMC Model S VIN #4925

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    I don't have the exact quote BUT...

    As a long term investor, I'm in favor of a sizable MINORITY investment in tesla. If the price is right, then this could significantly boost Tesla's valuation. I'm all for that. This would help accelerate the worlds inevitable transition to sustainable transportation.

    It's absolutely established that Mr Musk will not allow an acquisition of tesla anytime soon. I trust him at his word.
     
  5. AudubonB

    AudubonB Mild-mannered Moderator Lord Vetinari*

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    So Mr Musk met with the head of Apple's m&a. Hmm. I wonder why Tesla would want to acquire Apple? :)
     
  6. Con-Troll

    Con-Troll New Member

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    #7 Con-Troll, Feb 16, 2014
    Last edited by a moderator: Mar 13, 2016
     
  7. adiggs

    adiggs Active Member

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    Heh - the cash flow would be nice, but it seems like the risk of distraction would be too high. I suppose if you could organize it as a wholly owned subsidiary, and then really keep things separate.

    Nah - I just don't see it.

    :p
     
  8. kenliles

    kenliles Active Member

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    Seems to me any meeting could have been about any numbers things. Elon said Apple wouldn't talk with them (regarding using iOS in ModS). Could be partnership talks for various auto-drive.. etc. And there might have even been some issues to discuss regarding Tesla pilfering of Apple employes, who knows... Neither company would be interested in acquisition imo
     
  9. Lump

    Lump Active Member

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    if Elon actually met with Adrian Perica & Tim Cook I doubt it was about IOS integration, Mr Perica is head of M&A at Apple, this would be a huge purchase for Apple & probably require repatriation of lots of cash from off shores resulting in a 35% tax hit on top of the premium Tesla would ask for.

    Either battery joint venture or bogus.
     
  10. hobbes

    hobbes Active Member

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    #11 hobbes, Feb 16, 2014
    Last edited: Feb 16, 2014
  11. drinkerofkoolaid

    drinkerofkoolaid Active Member

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    #12 drinkerofkoolaid, Feb 16, 2014
    Last edited: Feb 16, 2014
    In my view, it means they were interested in opening discussions about either buying Tesla or negotiating a deal with Tesla to provide the capital for a Gigafactory that would benefit both companies. Tesla would benefit from access to Apple's supply chain. Musk won't sell Tesla. A partnership related to the supply chain, and future technology seems more likely.

    The Model S uses a number of the same components as high end computers. Additionally, the Model S OS requires a "walled garden" approach to security, and over the air updates, both of which Apple is the best at.

    Apple, based on their patent filings is also working on future technology for automobiles that could be integrated into future Tesla vehicles.
     
  12. kenliles

    kenliles Active Member

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    @Lump
    yea battery joint venture a distinct possibility. Perica involvement though wasn't related to Apple purchase of Tesla imo, but the integration of M&A to any partnership agreements. Apple may even have been working on acquiring Israeli firm tesla is now partnering with for displays. Or some other common purpose acquisition - Apple is currently in the throws of integrating into cars. I think your thought of battery partnership has a lot of merit and I saw Apple as a distinct possible investor in MegaFactory for access rights to the production, a very typical Apple investment strategy. Jumping to Apple interest in Tesla acquisition is just conjecture that doesn't fit the business criteria of either (too your point as well), but would sure generate a lot of article hit business!
     
  13. hobbes

    hobbes Active Member

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    #14 hobbes, Feb 16, 2014
    Last edited: Feb 16, 2014
    That crossed my mind also. Maybe the Gigafactory might be a joint venture of Tesla with Panasonic (know-how) and Apple (cash and maybe also interest in getting cheaper batteries for their own devices). Either way, I don´t think it is by accident that this is leaked now as the conversation happend last year.

    Just saw there is already a thread for this:
    Rumors- Apple May Have Considered Purchasing Tesla
     
  14. FredTMC

    FredTMC Model S VIN #4925

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    yep. I would be thrilled with a minority investment by Apple if the price paid is over 25% of current stock price. Otherwise, meh
     
  15. Discoducky

    Discoducky Active Member

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    This seems like all positive and could be a big move for Tesla and Apple
     
  16. hobbes

    hobbes Active Member

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    Wonder how much this is going to affect stock price?! Might be a great double hit together with a good earnings report. Squeeeze :)). I bet someone will ask about it in the ER Q&A.
     
  17. anticitizen13.7

    anticitizen13.7 Enemy of the Status Quo

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    This was posted on Macrumors not too long ago. Browsing through the comments, it appears that a good percentage of the Apple early adopter and enthusiast crowd understand what Tesla is about and why it's products are selling well. A large portion of the commenters though still do not understand the company or it's plans.

    Tesla has been showing up in lots of Apple related news recently, usually in the context of employees moving from Apple to Tesla. The free media exposure (and sometimes the flame wars it generates) are driving demand for the stock. My wild guess is that this will put increasing pressure on the shorts.
     
  18. DaveT

    DaveT Searcher of green pastures

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    If Apple wanted a minority share they could buy shares on the open market and it would likely be cheaper than negotiating a premium over common shares with Tesla.
     
  19. AlMc

    AlMc 'Senior Moments' member

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    I can definitely see Musk taking a meeting with any viable partner for the Giga battery factory. Apple would make perfect sense. I know that 'business is business' and not 'personal' but wonder if Apple not smarting a bit from losing some core people to TM since those talks.
     

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