Tesla and Apple Rumors Continue to SwirlBy: Brian Powell - February 18, 2014
On Sunday, the San Francisco Chronicle released an article which has shaken the core of the internet and tech world. According to an anonymous source, Adrian Perica, Apple’s merger and acquisitions chief, and Elon Musk, CEO of Tesla, held a secret meeting in Cupertino, CA last spring. Unfortunately, both Apple and Tesla have declined to comment on such a meeting. Thus, let the internet come ablaze with wild rumors and speculations.
While the meeting has not been corroborated by either company, there are many good reasons to believe that such a meeting would have been held. The supposed meeting between technological giants came after much pressure from business analysts for the two companies to join forces. Berenberg analyst Adnaan Ahmad even went as far as writing an open letter to Apple CEO Tim Cook explaining why Apple’s acquisition of Tesla would be the best step for Apple to take for its future stating:
“The auto industry is going through a technological discontinuity in its shift to hybrid and electric vehicles. This is still in its very early innings. Apple needs know-how (technology, platform strategy and dealer network) in this space and hence I propose that you should buy Tesla. I know this is radical and potentially “transformative” but this would radically alter Apple’s growth profile… From a US national policy perspective, Apple could re-ignite the US auto industry and give it a competitive edge versus the current Asian and European leaders, similar to what you have done in the smartphone and wireless space where the US is now at the forefront of technological leadership after having been a laggard for over two decades. And finally, in Elon Musk, you could strike up a partnership and obtain a new iconic partner to lead Apple’s innovation drive.”
Despite all of the sense derived from this letter and other facts (such as the fact that Steve Jobs expressed his wishes to build a car before his death), Apple completely acquiring Tesla is most likely not going to happen. Apple is struggling enough to keep its own products at the top of the market, and Elon Musk has publicly voiced his intent to keep Tesla in his possession forever:
What is more likely, however, is that the closed-door meeting was held to discuss Tesla’s progress on its proposed “Gigafactory” – a battery factory which would double global gigawatt battery output. Coincidentally, the company would produce the same exact batteries that Apple currently uses in its devices.
So, while a Tesla-Apple merger sounds tempting, the US is not likely to see an iTesla anytime soon. Instead, one is more likely to express much frustration at trying to charge one’s Tesla Model S with a lightning cable.
Image via YouTube