A Tesla Motors (TSLA), Apple Inc. Union? It Could Happen.

Tesla Inc (TSLA)

Tesla Motors Inc has a target painted on its back by a number of rivals – some of those rivals are bigger and richer while others are smaller and nimbler. Faraday Future has become a stand-out in the current pack of rivals. The startup has poached a number of high-profile Elon Musk employees, it is as crazy as Tesla in its ambitions, and it has broken ground for a $1B factory right in the Gigafactory’s backyard.

Dag Reckon, VP of global marketing at Faraday Future made some interesting revelations over the weekend. He noted that “we’re moving into beta, getting closer and closer to that reveal. We can’t give a definitive date. We’re bringing a new car to market”

Tesla is under massive pressure to deliver, silence its critics and justify the sky-high valuation that its stock enjoys. A seemingly no brainer solution to Tesla’s problems is to be acquired/bought over by Apple Inc. . The acquisition of Elon Musk’s company by Apple appears to be marriage destined by the gods and many folks are always wondering why both firms have not been able to see eye-to-eye on acquisition talks.

Here’s why an Apple-Tesla deal would be excellent

Steve Wozniak, Apple cofounder is a Elon Musk fan who breaks traffic rules with his Model S just to create news for Tesla. The Model S is considered the equivalent of the iPhone on wheels and there’s no denying the fact that most of the things that Elon Musk has done at Tesla were taken from the Apple playbook.

Elon Musk needs money to scale Tesla Motors , build the mass-market Model 3, and stay ahead of its many rivals. Apple has strong cash position that could remove most of the existential threats facing the EV maker and the firm could focus more of its energy on taking over the auto market instead of worrying about its future.

Apple is also reportedly making forays into the auto sector with its not-so-secret Project Titan. Buying Elon Musk’s firm could catapult Apple from making behind-the-scene moves to sitting at the forefront of the EV market. More so, apart for the fact that Apple and Tesla operates in different markets, both firms appear to be first cousins in their focus on premium products sold with quality service that demystifies complex tech.

Here’s why a buyout deal might never happen

However, for all our wishful thinking, Apple might never make a move to buy Tesla Motors and even if Tim Cook makes the move, the odds that Elon Musk would agree are low. To start with, Apple has a tradition of buying smaller “nameless” firms that it can merge into its ecosystem but Elon Musk’s firm is already a brand name and the firm would be forced to keep the Tesla brand even after buyout.

In addition, Elon Musk and Tim Cook are polar CEO personalities. Tim Cook is a supply-chain pro, he knows how to strike a hard bargain to make profits, and he plays it safe by selling an overpriced digital watch instead of rebuilding the TV.

Conversely, Elon Musk is among the breed of rouge CEOs – he is a closer match to Steve Jobs than Tim Cook will ever be. Elon Musk doesn’t seem to like being a subordinate being the CEO of Tesla and SpaceX in addition to being the Chairman of SolarCity.

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Adam Green is an experienced writer and fintech enthusiast. He he worked with LearnBonds.com since 2019 and covers a range of areas including: personal finance, savings, bonds and taxes.


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