Why Apple won’t buy Tesla, but make a ‘strategic investment’ in it

“Apple Inc. CEO Tim Cook coyly avoided the question at Apple’s media event on March 9 that most people wanted him to answer — will Apple be interested in buying Tesla Motors Inc,” Ritesh Anan writes for Benzinga.

“Ross Gerber, CEO of Gerber Kawasaki, which holds a large stake in both Apple and Tesla was on CNBC Wednesday to discuss why he feels Apple won’t be buying Tesla, but can make a strategic investment in it,” Anan writes. “‘The battery is really the story,’ Gerber said. ‘What I see Apple doing is making an investment into the battery factory and helping Tesla raise capital…. Maybe buying let’s say $4 or $5 billion worth of Tesla, let’s say 15 or 20 percent, 10 percent, somewhere in there, just so that they can own the technology for the batteries, help them the capital they need to advance the process.”

Read more in the full article here.

MacDailyNews Take: Apple certainly has the cash and the cash flow to dabble in whatever they’d like.

8 Comments

  1. Almost no company could benefit from improved battery tech than Apple because Apple is always trying to build some super-slim device. If Apple could just get a 10% improvement of battery life over the competition (with the accompanying patents), they’d have a huge advantage in the smartphone and tablet market. Although, I suppose 10% improvement is unrealistic but even 2% would be great.

  2. This Tesla battery factory is mostly for their vehicles and for Solar City. Some states are mandating large battery backup systems to the grid.

    Think huge Solar farms going to huge batteries to be used at peak times.

  3. My first Apple car, will have one door, and one plug in port for charging. This car works as a typical car, with a personal experience.

    My next Apple car will have no doors or ports. Both charging and entry will be wireless.

    It will automatically detect where I want to go, and take me there. However, it does not move. Via haptic feedback it will simulate movement, projecting the view of the passing road, onto the 3d surround screens. When I get to my final destination, I will exit the car wirelessly. If it’s my office, I will work until the day is done, and come back home via the same process.

    The very nice thing about this? I never got out of bed.

  4. Apple via Steve Jobs, had a 7 billion dollar relationship with Pixar/Disney/ABC and now Lucas Films and Marvel. This relationship is pretty tight I would think. I really don’t know what the state of the relation is like today, since Steve’s passing.

    All Apple needs to do is invest a controlling or marginally controlling interest in Tesla, not to tell them what to do, but to provide an incentive of cooperation. Apple does not need to be everything, or control everything. However a cooperative collective of companies is not a bad thing at all, especially if this collective is based in different sectors of the economy.

  5. Apple may make an investment into the factory but they’re not likely to own any battery technology. Panasonic has heavily invested in the factory and is their partner for the manufacturing of the cells. Panasonic is their current cell supplier.

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