Why Apple acquiring Tesla makes sense

“It’s been a while since the idea of Apple’s intention to purchase Tesla Motors started circulating in the corporate world,” Bilal Liaqat writes for Seeking Alpha. “The rumor sprang out of the supposed ‘secret’ meeting between Tesla’s CEO, Elon Musk, and Apple’s head of mergers and acquisition, Adrian Perica, last spring. It must have gained strength from Adnaan Ahmad’s open letter to Perica and Apple’s CEO, Tim Cook, in which he suggested that Apple Inc. should try to buy Tesla Motors.”

“However, talks between two major tech companies do not necessarily mean that one is looking to buy the other – there are a lot of other, more likely possibilities,” Liaqat writes. “Most people seem to be centered on the idea of Tesla benefiting from Apple through a merger or technological borrowing, but, with Tesla’s Gigafactory on the way, it is possible that, contrary to popular belief, Apple, and not Tesla, could be on the gaining end. The $5 billion Gigafactory would look to produce enough battery packs to power as much as 500,000 electric cars yearly by the year 2020 – and it is a possibility that it could produce batteries to power other gadgets too.”

Read more in the full article here.

Related articles:
Why Apple could win big with Tesla’s massive new battery ‘Gigafactory’ – February 28, 2014
Tesla CEO Elon Musk confirms Apple talks; battery ‘gigafactory’ discussions more likely than buyout – February 20, 2014
Why the heck would Apple business development execs meet with Tesla Motors? – February 19, 2014
Apple-Tesla talks fuel hopes of advanced battery tech, deeper iOS in the Car integration – February 18, 2014
Apple acquisitions chief met with Tesla CEO Elon Musk – February 16, 2014
Tesla hires Apple VP of Mac Hardware Engineering Doug Field to lead development of new vehicles – October 24, 2013

63 Comments

    1. Ahh, but if you are a journalist and your boss said “Hey, I see you posted only 2 stories last week, get your butt in gear.”

      Then you understand how a “journalist’ can take some other writer’s note about battery talks between the companies and spin it into a whole new article.

      Now it makes PERFECT sense.

      1. Exactly.

        Yet another brain-dead piece from Seeking Alpha, perhaps the biggest circle jerk in the investing community.

        Personally, I think it makes better sense for Tesla to buy Apple, and then lease it back. Or rent the company out for birthday parties.

        There. I feel better now.

        Oh, and be safe this weekend. If you have to go to Costco, as I just did, be sure to bring your light saber. You’ll need it.

    2. both companies products rely heavily on battery technology. each company’s products can improve greatly with advancements in battery tech, so why not join forces and get it done

      1. here’s why not to join forces: electric power & propulsion is a whole different ball game from consumer electronics. The important bits of the Tesla are so far outside Apple’s interest and expertise that no cross-pollination is possible. Tesla can jump on board with Carplay just like all the other automakers.

        1. While the propulsion side is of little to no interest to Apple the power side certainly is. Tesla currently uses very standard lithium ion cells about the size of a AA is a very special array, so the base level battery tech is not that different. Both Apple and Tesla have similar goals battery wise, higher capacity, smaller, lighter and much more rapidly chargeable. Also both companies need them in large quantity, and both want an exclusive edge in this department over their competitors. I think both could benefit from co-development.

          1. Totally agree, both companies have extensive battery intellectual property that could benefit the other. Cooperation or at least examining the possibilities would make sense and encourage each to further develop concepts possibly on a mutual basis.

  1. Tesla is not for sale. How could Apple buy it even if they wanted too. And for what reason? Apple is a computer company, not a car company. It makes absolutely no sense at all! Stupid story.

      1. Certainly no more fanciful, except the Tesla is fully baked, and more likely to have CarPlay, since there is no-one to listen to music in an autonomous car !-)

  2. It wouldn’t have to be a purchase based on folding Tesla into Apple, they could just buy them then almost leave them as they are but benefiting mutually from developments and thinking that Tesla will be highly profitable in the future. Not saying they should, but they don’t have to just buy and entirely absorb companies.

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