What’s To Be Gained By Apple Buying Tesla?

The SF Chronicle has reported that Apple’s mergers and aquistion chief had a meeting with Elon Musk last Spring, adding fuel to the rumours that Apple is looking to buy Tesla. When interviewed by Bloomberg Musk said Apple making cars would be “a great idea,” and confirms that Tesla “had conversations” with the company, but refused to comment on whether the subject of the talks related to an acquisition.

Apple certainly has enough money to aquire Tesla. Lately instead of investing elsewhere, the company has chosen to repurchase its own stock, spending $40 billion on its own shares and plans to buy another $20 billion. As well as having enough cash to buy Tesla outright, it would certainly be a sensible investment for Apple, as the auto maker is set for an almost limitless growth if it can cause a big stir in the industry.

Steve Jobs Wanted To Build A Car

The New York Times reported how Steve Jobs told the newspaper before he died that he wanted to build an Apple car.

“In a meeting in his office before he died, Steven P. Jobs, Apple’s co-founder and former chief executive, told John Markoff of The New York Times that if he had more energy, he would have liked to take on Detroit with an Apple car,” the report said.

It would appear Job’s vision left an impression on the rest of the company, with Apple CEO Tim Cook repeatedly talking about the company’s interest in expanding to new product categories. It’s a big jump to go from producing consumer electronics to cars but as cars become more high-tech, the gap is not as big as it once was. Car manufacturers work with tech companies in a bid to develop connected cars, incorporating software and hardware into our vehicles. At WWDC last year, Apple announced its plan to put “iOS in the car”; maybe a Tesla car is the next automobile of choice for this new initiative.

Apple and Tesla Are Like Two Peas In A Pod

When it comes to design, Apple and Tesla have the same ethos; advanced electronics, high-end branding and an approach that doesn’t follow the norm. Both companies have a serious amount of attention to detail and want users to fully aprreciate the experience of using their products. Even when it comes to retailing Apple and Tesla have a similar strategy, choosing to sell through their own stores rather than using third-party dealers.

Both companies would have a lot to gain from the aquistion. Tesla nearly didn’t survive as a company when in 2008 it almost shut down until a last minute investment saved the day. Although Tesla is stable now, Apple could definitely give the company another boost, helping to improve production inefficiencies as well as be a financial buffer.

Just like the Mac, the Model S will have a niche market but at the moment is ultimately out of the reach of most people. Tesla is hoping to build a car that will cost ‘only’ $30,000. With Apple on-board sharing its expertise in optimizing production and keeping costs down, it will help the auto maker achieve a product that can be produced to meet the mass market demand that a mid-range car would generate.

All of this is still just speculation but just imagine what a car made by Tesla and Apple would look like…

[Image via electric-vehicle news]

SOURCE: http://thenextweb.com/apple/2014/02/17/apple-bought-tesla/#!ws0IH