Why Apple/Google/Whoever Should Buy Tesla

[slyastro]

I think that the author's suggestion (Apple buy Tesla, name Elon Musk CEO of APPLE and Tim Cook goes back as COO) would be VERY positive for Apple!!

But as an investor in Tesla, I think it would limit the potential upside. What do you guys think?

http://mobile.bloomberg.com/news/20...ve-jobs-would-ve-bought-tesla.html?cmpid=yhoo

 

[GasDoc]

Article: Why Apple Should Buy Tesla

No news here. Just someone complaining that Apple should have bought Tesla instead of issuing bonds.

http://www.bloomberg.com/news/2013-...ve-jobs-would-ve-bought-tesla.html?cmpid=yhoo

 

[Raffy.Roma]

I wouldn't like Apple to buy Tesla. I would rather like Tesla to develop a new version of Model S together with Apple. This could be a good idea.

 

[Citizen-T]

We've been through this before. I still maintain that an Apple/Tesla merger makes no sense for either company.

 

[GasDoc]

We've been through this before. I still maintain that an Apple/Tesla merger makes no sense for either company.

I agree.

But then again, I used to work at Apple and asked a friend of mine about a phone in the early 2000's.

The reply was that he didn't think they wanted to get into the phone business :smile:

 

[Yuri_G]

We've been through this before. I still maintain that an Apple/Tesla merger makes no sense for either company.

Agreed. The only benefit for Tesla would be virtually unlimited capital, however Tesla's limited capital makes them innovate. I think it's a lazy idea, honestly. Tesla is already disrupting the auto industry, there is no reason for Apple to be anywhere near Tesla or cars for that matter.

 

[Johan]

This guy gets it. However I think Apple is no longer such an attractive partner, seeing how Tesla is in it's prime while Apple is fading... (Like a 17-year old rookie of the year vs. a multi-MVP quarterback in his last few years)

 

[DonPedro]

You can say that. But with more than $100bn sitting in the bank, if Apple wants to buy Tesla it buys Tesla. Period.

 

[Johan]

Not sure. If Elon holds the majority and thinks it's too early to sell, or the wrong company to sell to, I could see him turning down any multiplier of today's market cap.

 

[mitch672]

DonPedro, that article also ends with "Apple would rather sell me a watch, or a bond", and he concludes it's not likely to happen.
IMHO "Google" is a much better partner/merger, as they have years and billions invested in "self driving cars", Tesla already uses google maps, and Elon and Serge/Brin already know each other and would be a better match.

 

[adric22]

One benefit not mentioned would be that Tesla would become a lot more legitimate in the eyes of a lot of skeptics. There are probably many potential buyers who decide not to buy because they fear Tesla may go out of business and leave them with an unsupported car. But with a big company like Apple behind them, I could see all of that changing.

 

[deonb]

DonPedro, that article also ends with "Apple would rather sell me a watch, or a bond", and he concludes it's not likely to happen.
IMHO "Google" is a much better partner/merger, as they have years and billions invested in "self driving cars", Tesla already uses google maps, and Elon and Serge/Brin already know each other and would be a better match.

Hope not. Google would want to use Google glass on the windshield to project a virtual billboard next to the road every 50 feet...

 

[jerry33]

Right now the problem with Apple is that the bean-counters and professional-managers have taken over. I hope they recover, but...

I don't want Tesla to lose its visionary leadership.

 

[dsm363]

If Apple bankrolled Tesla and stayed out of their way then maybe but I'm not sure if any company that would pay serious money to acquire another would stand back while they make decisions they might not agree with.

 

[Soflason]

Good article but it makes me pine for the good ole Steve Jobs days when the idea of an "iCar" could've been something as groundbreaking as what Tesla's doing, but, I think those days are long past us now...

The next industry leader to take the vanguard (like Jobs) will be Elon. I'm excited to watch it all unfold...

 

[Soflason]

Now even USA Today is weighing in:
Drive On: Should Apple buy Tesla?

They conclude: "​He even goes so far as to suggest that when Apple buys Tesla, that it move Musk to CEO and boot Tim Cook to COO. Just what Musk needs. Besides running Tesla and rocket maker SpaceX, he takes over Apple as well."

 

[SCW-Greg]

I wouldn't want to see Tesla tied to the Apple Eco system (as much as I'm invested in it myself), nor would I want to see Tesla tied to the Google Eco system. Both of these companies will ebb and flow, even go? But by being independent, Tesla can stay relevant across any of the newest and latest technology.

Side note, I think the Apple UI team could actually improve the UI of Model S as it stands now, perhaps be quicker too at removing some of the persistent bugs many are reporting on... but better to be independent.

 

[brianman]

Hope not. Google would want to use Google glass on the windshield to project a virtual billboard next to the road every 50 feet...

The day Google or Apple buys Tesla is the day I start scouting the current resale value for my car.

 

[JRod0802]

Here's an interview by bloomberg of the author of the original article, discussing the article:

Apple Should Make Elon Musk CEO: Palihapitiya - YouTube

 

[phased_induction]

I think it would be a great idea if Apple bought Tesla, or purchased a majority ownership or whatever, because of the billions in capital it would inject.

I'm rooting for Tesla, but I think their biggest challenge has been and will always be lack of capital. I'm amazed they've made it this far, and I hope they break into the big leagues, but if they ultimately fail, I think more than anything it would be because they just didn't have enough money to pull it off.

It takes billions (that's with a "b" in front) to play in anything beyond a niche capacity. Right now, even as it sails towards 20,000 cars this year, Tesla is still very much a boutique manufacturer. To give you a perspective, Toyota and GM can each pump out 20,000 a *day*. (Actually, I think it's much higher.) And when you look at most of the current boutique players, they are either struggling or else owned by much larger parent companies. For instance, Lamborghini is owned by Audi.

Apple would help Tesla enormously.