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Should Apple Buy Tesla?

Accepted submission by takyon at 2018-08-28 13:44:03
Business

Opinion: Now would be the time for Apple to buy Tesla, and kick Musk out of the driver's seat [marketwatch.com]

Elon Musk has put an end to his idea [marketwatch.com] to take Tesla private, but still has a tough road ahead to meet profitability and production projections, especially as Tesla handles expected investigations and lawsuits stemming from Musk's ridiculous "funding secured" misadventure [marketwatch.com]. Apple, meanwhile, has billions in cash to burn [marketwatch.com], manufacturing prowess, obvious interests in entering the car market and finding new form factors beyond the smartphone — and the pull to tell Musk his services are no longer needed.

[...] Apple does have a lot more money than Tesla, which is running out of cash fast. It also has a chief executive in Tim Cook who knows about dealing with supply chains, mass manufacturing and all the other processes that sound easy when Musk describes them but are nearly impossible when Tesla attempts to perform them.

[...] On Monday, Loup Ventures analyst Gene Munster played down the theories that Apple might attempt some sort of deal, saying that if Tesla becomes profitable, the notion is just a fairy tale. "If we're wrong, and Tesla fails to reach profitability in the next year, Apple gains the upper hand and becomes the most likely investor or buyer," Munster wrote in a blog post [loupventures.com].

[...] Apple knows a little something about building a strong profit margin with a premium product sold through its own retail outlets, and could handle many of the other issues that will continue to beset Musk and Tesla. In his now legendary tearful interview with the New York Times [nytimes.com], Musk admitted that Tesla has sought another executive to handle operations, and even said that "anyone who can do a better job" could have the CEO role.


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