One interesting rumor says Apple tried to buy Tesla a few years ago; back when it had no money, many crazy-assed ideas, and a single car line. Today, Tesla has less money, more crazy-assed ideas, three cars– and a deflated stock price. Could Apple be shopping again?
I. Hope. So.
Tesla’s CEO says the company needs to cut costs or risk running out of money in less than a year. I’m sure investors loved to hear that. Wait. They heard it and the stock is in the dumpster. Again.
The rumor says Apple was interested in Tesla back in 2013. For $240 per share. TSLA is trading at less than $215 now and the money is running out.
Guess who has more money than they need?
Apple could buy Tesla– probably for less than $50-billion, drop in $10-billion or so to keep it floating long enough to launch a few more vehicles and improve cash flow.
Why would Apple do that?
That is Apple’s self-driving car project that seems to be sucking up money by the billions and with little to show off to investors who are too drunk of AAPL already, and basking in their riches and dividends so are not interested in Apple competing with the likes of GM, Ford, Toyota, Honda, or Mercedes-Benz.
There’s just no money in making cars. At least, not as much money as Apple normally makes with its products.
Tesla is just another example of an idea that had legs but maybe not enough cash to do much more than become a footnote in the history of automobiles. Apple should have bought Tesla back in 2013 when it was dirt cheap. TSLA started the year at less than $40 a share, hit over $180 a share, and finished 2013 at about $150 a share.
Even today TSLA is worth less than $40-billion. General Motors is worth more than $50-billion. Ford is over $40-billion. Except for that whole running out of money issue, that makes Tesla a bargain acquisition for Apple.
Apple should have bought Tesla when it was affordable. After all, the company is the most Apple-like car maker on planet earth.
Apple has money. Tesla needs money. Apple needs cars. Tesla has cars. This isn’t that hard to figure out.