What Could Apple Buy With Its $137 Billion?

[FalconNinetyD]

From All Things Digital:

"Apple could purchase 1,567,506 Tesla Model S Performance with 85 kWh battery and a carbon fiber spoiler at $87,400 each, which would effectively allow CEO Elon Musk to buy the New York Times (a bargain at $1.42 billion!) and use it as his own personal blog."

 

[digitaltim]

Perfect...

 

[rolosrevenge]

Beautiful

 

[Enadler]

More intriguing than that is that Apple could buy Tesla!

 

[Kaivball]

More intriguing than that is that Apple could buy Tesla!

An iTesla...

Intriguing...

 

[Herbys]

Tesla=Apple

An iTesla...

Intriguing...

A few years ago, every time someone asked me what the Tesla was, I used to respond "it's the iphone of cars". It might not be for everyone, but what it does, it does better than anyone else, and by a huge margin. Granted, the iPhone no longer carries its meaning, with the competitors caching up and even surpassing them, their share of errors, but I still think the Tesla is a car as Steve Jobs would have designed it (only that Jobs never had the engineering acumen Musk has).

 

[brianman]

More intriguing than that is that Apple could buy Tesla!

Incorrect. Unless Mercedes and Toyota lost their minds, and Elon violated some U.S. government agreements. At least, that's my recollection.

 

[mitch672]

Incorrect. Unless Mercedes and Toyota lost their minds, and Elon violated some U.S. government agreements. At least, that's my recollection.

Apple coud still buy tesla, they would have to pay off/buy out the agreements with Mercedes and Toyota, or just offer such a high price that even with their rights of first refusal, they still couldn't come anywhere near the offer from Apple, and Tesla would have to take the higher offer to maximize shareholder's equity. Of course it all depends on the exact agreements, but I'm sure Elon would find away to make it happen, if it was in his and Teslas future best interest.

 

[ElSupreme]

I'm sure Elon would find away to make it NOT happen, if it was in his and Teslas future best interest.

There I fixed it for you.

I highly doubt that Elon would willfully sell to anyone, much less Apple!

 

[mitch672]

There I fixed it for you.

I highly doubt that Elon would willfully sell to anyone, much less Apple!

No one knows, do they? If Elon suddenly had 10 billion in cash, he could put a lot more time, money and energy into SpaceX (his true passion), and get that retirement on mars he's looking for. If conditions of the sale stated that a tesla must continue it's mission charter as it exists, he probably wouldn't have a big problem letting go of it. Money talks. There is a launch windows coming up in 2016 where Earth and Mars are very close, those conditions don't occur again for another 27 years I've heard, so as you can see, there are other considerations than just the money.. Times is short for a mission in just 4 years, or would he wait until he's well into his sixties? He'd probably be considered too old for space flight by then.

 

[palmer_md]

As Jack Rickard of EVTV said. Apple has a cash problem...they need to find a way to spend it. Tesla has a cash problem, they need more. Apple cant really purchase anything without running into problems with creating a monopoly. Buying a car company would not have that problem, and it is one of the few things they could buy that fit. Apple also has a CEO image problem. Purchasing Tesla and then putting Elon as the head of the new company would solve that issue as well. He'd make an excellent spokesman for Apple, and I think he could really help guide the company quite well.

The big problem with this whole theory is that I don't think Elon wants to run SpaceX, Tesla, and Apple at the same time. I think I've heard him say his heart is really behind SpaceX and that Tesla is sometimes a diversion from his passion, but that he does not trust anyone else to run Tesla. I don't think any of us can imagine Tesla without him at this point, so he is sort of stuck with the job.

 

[Krugerrand]

No one knows, do they? If Elon suddenly had 10 billion in cash, he could put a lot more time, money and energy into SpaceX (his true passion), and get that retirement on mars he's looking for. If conditions of the sale stated that a tesla must continue it's mission charter as it exists, he probably wouldn't have a big problem letting go of it. Money talks. There is a launch windows coming up in 2016 where Earth and Mars are very close, those conditions don't occur again for another 27 years I've heard, so as you can see, there are other considerations than just the money.. Times is short for a mission in just 4 years, or would he wait until he's well into his sixties? He'd probably be considered too old for space flight by then.

All indications thus far is that he would not sell and has no intention of selling. While money talks to most people, Mr. Musk, seems to be one that isn't overly impressed with it. He knows its value to accomplish tasks, but he's not motivated by it. He has said repeatedly that he'd prefer concentrating his energies on SpaceX, but he has also said that he tried letting others run Tesla and it didn't work so for now he'll remain its CEO, until such time as Tesla meets the goals he's set out for it. I believe he mentioned or eluded to a period of time of 10-15 years, but it's been a while since I've seen that interview so don't quote me. It wasn't, however, any time soon.

 

[mitch672]

All indications thus far is that he would not sell and has no intention of selling. While money talks to most people, Mr. Musk, seems to be one that isn't overly impressed with it. He knows its value to accomplish tasks, but he's not motivated by it. He has said repeatedly that he'd prefer concentrating his energies on SpaceX, but he has also said that he tried letting others run Tesla and it didn't work so for now he'll remain its CEO, until such time as Tesla meets the goals he's set out for it. I believe he mentioned or eluded to a period of time of 10-15 years, but it's been a while since I've seen that interview so don't quote me. It wasn't, however, any time soon.

While you think Elon doesn't care much for money, it could have a dramatic effect on the development of SpaceX, his true passion, to stage a mission to Mars much sooner, than without a large infusion of cash. That was my point, which you seemed to have missed. While he has publicly stated multiple times, there is no one else that can run Tesla, thats probably not true any longer, with them turning the corner to profitability soon. Tesla's long term goals and plans would remain in tact, and I'm sure he would still retain a seat on the board, he might not need to be involved in day to day decisions and micro manage Tesla, there are other competent CEO/CTO's out their. If he manages Tesla for the next 10-15 years, he WILL be too old to go to Mars, thats a fact. Not many 60 year olds are fit for space travel. If he see's an opportunity to accelerate SpaceX, he could just take that oportunity, he doesn't "owe" Tesla anything, he's done an excellent job of guiding it to where it is today, but his TRUE passion is SpaceX, NOT Tesla, and when push comes to shove, he will go with his true passions. It boils down to some company (Apple, or some other major player), making an offer that is so large, he can't say no. I am thinking 5-10 times the current value of Tesla would be required to get his serious attention, and faced with that decision, who knows what he'd do. probably go with his passion, most people would. You make it sound like he "owes" us something, he does not, and Tesla can and would go on without him.

 

[Soflason]

Steve Jobs' final wishes was for Apple to do a car - I'm sure it would have been closer than most (in many ways) to a Tesla - maybe it's still in the works:
Steve Jobs Said He Wanted Apple To Eventually Make A Car - Business Insider