“Apple Inc. Chief Executive Officer Tim Cook, fresh from unveiling new details about the company’s first new device in five years, found himself facing shareholders eager for a marriage with Tesla Motors Inc.,” Tim Higgins reports for Bloomberg. “”
“Quite frankly, I’d like to see you guys buy Tesla,” an investor told Cook on Tuesday at an annual meeting at Apple’s headquarters in Cupertino, California. The comment was followed by laughter in the audience and some applause,” Higgins reports. “Ever the diplomat, Cook sought to sidestep the question. ‘We don’t really have a relationship with Tesla,’ he said, quickly pivoting to the subject of Apple’s in-car information and entertainment system, which he had also discussed a day earlier at an event to show off the new Apple Watch. ‘I’d love Tesla to pick up CarPlay. We now have every major auto brand committing to use CarPlay.’ Cook paused. ‘Was that a good way to avoid the question?’ he asked. ‘Hey, there are some perks to being CEO.'”
Higgins reports, “While Apple hasn’t discussed plans to build a car, the company has been putting together a team to develop an electric vehicle, including hiring automotive-battery experts, for production as soon as 2020, according to people familiar with the matter.”
Read more in the full article here.
MacDailyNews Take: From the hiring moves Apple and Tesla are making (poaching employees from each other) it would seem that Apple – so far, at least – feels they don’t need to buy Tesla in order to accomplish their current goals.
My Tesla P85+ Testdrive was not only very impressive, as a car nerd I must admit “this is the future, and it is already here!”
I need to have on, asap! Crazy acceleration, just google “insane mode Tesla”
better get on board soon, because they provide an Ubuntu clone inside, bah !
The Tesla is an overpriced heap of toxic junk with an ugly interior and a crappy UI on its in deck panel.
The fact that so many nerds like it is funny. The reality is that it’s a massively expensive car that is out of reach for most consumers. There is nothing groundbreaking about creating an expensive sport vehicle. If Nissan wanted the Leaf to have the same range as the Tesla, it would cost more money. Period. They could easily do it. And it still wouldn’t cost as much as the Tesla.
So when you realize that, there is nothing much differentiating about the Tesla other than its free charging station platform. The sensors, electric drive train… etc. nothing that other car manufacturers haven’ already done or can’t do.
The model S does indeed have a crappy interior and UI.
But I bought one anyway. Why?
Free gas
8 year warranty on battery
No oil changes
No spark plug changes,
No catalytic converter worrying.
No oxygen sensor replacements
No radiator leaks
No filter changes
No a million other things associated with a ICE.
Goodbye $1000 plus six month services. Goodbye $5000 gas fill ups per year. This alone is more than $56000 dollars saved over 8 years.
Paul:
You sure are delusional. I spend ~$300 at Mr. Lube each year to service my car. That’s new oil, lube, checks, and a few things that typically need to be done. My gas mileage is great and I can drive and drive and drive and not worry about running out of power and not finding any charging stations.
But let’s get to what you posted. You assume that in 8 years, you won’t have any repairs to do on the car. Where I am, we have a Tesla service centre. Hmmmm, I wonder why.
http://www.greencarreports.com/news/1095209_life-with-tesla-model-s-at-last-some-maintenance-needed-new-tires/page-2
My feeling is there will be many more pedestrian casualties at the hands of silent & stealthy electrical cars with “insane modes” of speed and acceleration. I’ve driven in a friend’s Tesla and it sure is nice though the Roadster was way too small. Sedan better, Mini-SUV best.
Checked out Tesla this past weekend – very impressive. With remarkable future-proofing (has all the necessary sensors and servos for autonomous driving when that day comes), rust-free aluminum, easily swappable battery pack (15 minutes), FREE charging stations covering most of the country (and easily enough to drive from coast to coast for free), more cargo space in a sedan than in most crossovers, 0-60 in 4.5 seconds (or 3.5 seconds with the dual-drive system). Already wifi-equipped (and included for free), and over-the-air upgradeable for most functions. Easily a car that could last 20-25 years, for a very reasonable total cost of ownership. Assuming anyone can predict what the future will look like in 10 years, much less 20, and that you’d want to drive the same car that long. But of course, it will have an excellent resale value as well.
If Apple decides to build an electric car, it will end up being more than 90% of what Tesla has already accomplished.
The famous poaching of engineers between Apple and Tesla is a ruse. They are engaged in a joint venture that will knock everyones socks off when it is revealed.
Tesla is the AppleWagen Edition of the future. We’ll be amazed at the Sport and the Wagen. (Hoping the Sport is a revived Aptera and the Wagen is like an electric Honda Crosstour. But thats just me. Apple and Tesla will do better)
I just hope the Wagen Sport is waterproof. 🙂
I’ve never driven or ridden in a Tesala, but my understanding is they make excellent cars that owners absolutely LOVE!
But, I don’t think it’s realistic for Apple to buy Tesla right now. Tesla’s Market Cap and Enterprise Value are currently about $24.5 Billion. Apple has tons of cash, but not much left in the U.S., so Apple would need to take out loans to finance the purchase.
Another question, is Tesla even a good purchase? Will acquiring them help Apple manufacture the cars they want to sell more quickly or better?
This really depends on what Apple thinks it can create. Apple only moves into a new product category if they can offer a differentiated (superior) product that doesn’t yet exist.
So, if Apple really wants to make cars, they’re thinking of something different than what Tesla is making now (or has announced).
Tesla currently has a forward P/E ratio of 46. This is very high and means investors expect Tesla to have a ton of growth and large profits in the future. If Apple enters the market I could see them sucking a lot of potential growth out of Tesla, which would result in Tesla’s stock price dropping drastically. Maybe in half or lower.
I would much rather see Apple hold off and pick up Tesla in 5-10 years for half what it would cost them right now. At that point I expect the only thing of value to Apple would be the Super Charger station network.
No, Apple doesn’t need Tesla to build a car but might need their batteries, especially as Tesla has started construction on a massive factory that will be able to dwarf current battery output. Wonder if Apple plans to do the same? Certainly that would be a telling sign if so.
Tesla has already made it clear they will sell batteries to any car manufacturer that wants them. Elon is a very forward thinking guy. Tesla’s operating goal is to encourage electric car technology first, and reap the benefits second.
Similarly, its operating goal for SpaceX is to get to Mars, while providing useful services to government and industry on the way.
Very similar to Apple’s focus on making great products first, and letting sales and margins take care of themselves.