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. unless there is charging stations as abundant as gas stations electric cars will never take off.

    better off buying Elio motors, which are making a car that will cost under 10K, get 80mpg with gas. They could make that car the iPod touch of the car industry

    1. The reality for many is there are plenty of charging stations when you consider your own home a charging station. While I didn’t buy a Tesla because it didn’t fit our driving requirements, we did buy a Volt last Friday. Since Friday, I have not used one drop of gas and put on 300 miles on the car and have not had to use a charging station outside my own home.
      We will see a real cost saving of around $400 dollars a month after calculating in the cost of the electricity.
      I for one disagree with your assumption. An electric vehicle suits the 35-40 mile I travel daily and for a certain percentage of the driving population, that is plenty.

      1. That certain percentage you’re referencing is about 80. Fewer than 20 cars out of 100 are driven more than 40 miles in a day.

        The Volt is a really smart car, IMHO. Chevy got the systems engineering prize with the series hybrid approach. They could have taken a giant leap forward with a more creative take on the coachwork, but that’s just me. They definitely failed to get their dealers behind selling the Volt.

        GM, they can change, if they have to.

        Don’t forget to change the gas in your tank every once in a while. It can get stale.

        1. I’m actually enjoying the car more then I expected. Yeah, that gas getting stale thing is a real thing but I read that it will actually run the engine if it gets to like 3 months and I haven’t used the gas. That’s pretty cool actually. I like cool things and that is probably why I have a lot of Apple products.

          The only issue I’m having seems to be a power struggle going on with Siri and On-Star. On-Star does seem to be smart enough to understand when I say, “call my wife” or “call my son”. I have to prompt Siri and she come on and bitch slaps On-Star and takes over. haha

    2. Tesla is busy building a network of quick charging stations across the country. Plus, there are many places that are offering charging stations. The outlet mall near us has several.

    3. Why are you comparing a 3-wheel enclosed motorcycle to a car? The Elio was designed for a 6’1″ person or less and has a tiny back seat (impractical for most). The range on it for me, the wife and kids is 0. Compared to the Tesla where there are free charging stations for pretty much any long distance trip I want to take in the U.S.

      The Elio seems like a great vehicle for anyone where a motorcycle makes sense, but they want to be enclosed for comfort, but it’s not comparable to a 5 seat luxury sedan in any way.

  2. Oh please. If anything, they were asking Apple to invest in the Gigafactory and probably work out a cross licensing deal with them in developing better batteries. Apple has long been known to be in the “battery game” and have had an engineering team working on battery chemistry for a while now.

  3. Unless you live right smack in the city, the additional cost of hybrid cars barely breaks even in savings unless you drive the care at least 8 years. Then, how are you going to sell a car with an expensive battery that needs to be replaced? I will run to buy a hybrid when the cost comes down, but they are too busy milking adopters for all they are worth. At what point can they get an Accord Hybrid less than $5 grand more than a regular 4cyl. Accord? To get in the green(no pun intended) making up that additional cost, you have to drive that thing 10 years.

      1. Great.

        Only problem is most electricity is produced by coal burning plants. And batteries are bulky, very bad tech and clogging landfills daily.

        Green answer: Hydrogen.

        1. Really?? Coal is far cleaner than the crap coming out of an ICE engine. Also the batteries coming out of the electric cars are put into “retirement” by being installed in homes and businesses. That means your battery is worth money to you and has a life long after its removed from an electric car especially from a Tesla. My Mazda may be the last ICE car I own… can’t wait.

            1. Look into what it take to create hydrogen and you might change your tune. Also terrorists can’t blow up electric cars, can you imagine the carnage that will take place with all that hydrogen floating driving around in cars and at storage facilities!

    1. Well then, since journalism seems nowhere in evidence, how about even more unfettered speculation, more in the style of Douglas Adams?

      No one (until korgri, above) has mentioned what should have been an obvious connexion – space. Suppose Apple’s new spaceship “campus” is an Ark preparing to depart for the stars, and are working with SpaceX’s Elon Musk to that end? The ticket lottery is going to be hellacious.

  4. Those who knew Steve Jobs knew that in his last years he was really interested in the auto industry and had thoughts on getting involved in it.

    I highly doubt Apple is now looking at this (other than CarPlay and sharing of battery tech), nor should they be. But, if “Steve was alive today”, I could see him being involved with Tesla on some level.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.