Calacanis: Apple Inc. To Buy Tesla For $75 Billion In 18 Months?
Calacanis’ prediction is based on Apple’s interest in building cars and Tim Cook’s obsession with clean energy
Apple Inc. (NASDAQ:AAPL) rarely makes big-ticket acquisitions. Its biggest ever purchase was the $3 billion deal for Beats Electronics. But angel investor and entrepreneur Jason Calacanis predicts that the Cupertino company would pay a staggering $75 billion to buy Tesla (TSLA) in the next 18 months. Rumors have been doing rounds for more than a year that Apple was interested in buying Tesla.
Why Apple and Tesla are a perfect match
Last week, The Wall Street Journal, Reuters and Financial Times reported within a span of three days that Apple was indeed working on its own electric car. The Cupertino has hundreds of engineers dedicated to working on a top-secret car project dubbed ‘Titan.’ Apple has been aggressively hiring Tesla engineers by offering them big salaries. The Elon Musk-led company is also poaching Apple employees.
Calacanis confessed that he had no proof or inside information that Apple was looking to buy Tesla. His prediction is based Apple’s interest in building cars and Tim Cook’s “obsession” with clean energy. The iPhone maker last week signed a $850 million deal with First Solar to build a solar plant. Calacanis said that Apple and Tesla were a perfect match.
Steve Jobs wanted to challenge Detroit
Steve Jobs was also interested in building cars to take on Detroit. In an interview with John Markoff of The New York Times before Jobs died, the Apple co-founder said that if he had more energy, he would have liked to challenge Detroit. Moreover, Apple’s reputation for making great products puts it among the few companies Elon Musk would consider selling Tesla to.
Calacanis added that Apple’s software, design team, and global distribution network would “level Tesla up.” No other company can acquire Tesla because they either don’t have the money, or they can’t assure Elon Musk that they won’t mess it up. Apple already offers CarPlay for a variety of automakers. The connected car market is expected to be worth $141 billion in five years.
Apple has the cash and Elon Musk has the revolutionary technology, so it makes sense for them to join hands. Of course, no one knows what the share price of Tesla will be in 18 months from now – and that number would make a big difference in terms of offers. Additionally, Apple is not known for large acquisitions – so the prediction is far from sure.
Disclosure: None
It is time to ditch the internal combustion engine, its complexity and energy wasting contraption, Tesla know how, coupled with Apple electronic savvy, its need to grow in to new markets, to me sounds like a dream team to take on the best and beat them with easy.
Nicely put.
Rather apple get their hands on tesla than microsoft.....
Why do you say that?
I don´t have the foggiest idea of why Apple shouldn´t acquire Tesla for any length of time... Americans think the world of themselves but they haven´t found the key to improve on and beyond Toyota. Nissan or Honda.... I was once smitten on Chrysler cars for having Chalmers and Seagraves for ancestors.... which stopped somewhere at 1960... American still go for "the best car for the lowest cost" and "standing"... You are sales freaks without any class or style.. as you turn out to be.... You are not even interested in F-1 type bolides... So that´s my verdict for the last 50 years... Be happy with it... Donah..//
I find this hard to beleive. If it is such a good deal why would Google and BTD not buy the company before. Battery cars are NOT. A financial propersition. Apple would be wasting its money on such fool hardy investments. They should stick to what they are good at and that is innovation and leading edge technology. Tesler is NOT. Neither is it environmentaly friendly. Even Toyota looses money on every battery car it manufactures
No, they are not. Why buy a car company that loses money on each car they sell? That is not how $AAPL roles.
Why? don't you think $AAPL would rather have its stuff in every high end car manufactured on the globe? Why limit to $TSLA?
You hit the nail...
Because nobody is interested in their crapplay???
It's an interesting prospect considering Google is making the jump into creating the driverless car: www.talkmarkets.com/.../googles-new-age-tech-set-to-shock-auto-market
Creating an eco-friendly driverless car could be right up Apple's alley. However, the main issue is what Bruce stated below me. Apple would not jump into investing that type of money into a brand that continues to hemorrhage money: www.talkmarkets.com/.../why-tesla-might-be-the-markets-biggest-mistake-of-the-year