Tuesday, February 18, 2014

Do I believe Apple is going to buy Tesla?


And leave me driving an iCar?

In a word, no.

In two words, no way.

Though I'm not at all sure it would be a bad idea for Apple to diversify in this way, I just can't see Tim Cook making that bold a move.  Plus, Tesla's stock price is so high right now that Apple would be paying a huge premium for the company relative to its income (as all Tesla shareholders are).

Having said all that, I wouldn't be surprised if Tesla and Apple were to partner on battery production and/or technology efforts. 

Just don't expect them to become one company.


Disclosure:  I own both Apple and Tesla stock, and I own some Apple products and a Tesla Model S P85+.  I have zero insider information about either company. 



2 comments:

Griffin Barber said...

Definitely battery programs, which I think will be of benefit to everyone.

Mark said...

I agree that such a partnership would be lovely.

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