As Tesla is seeking to raise capital and as Apple made a huge killing and now sitting on even more cash I want to bump and update my previous recommendation that Apple should invest in Tesla:
Tesla’s long term mission is to accelerate transition to electric cars. However Tesla today is so far ahead, in terms of production numbers, range and costs, that it is very hard to competitors to compete with Tesla without losing money. Apple can’t really enter a market half assed, the risk for Apple is that they release a car and once they start to manufacture it at scale it is worse than what Tesla is currently offering in terms of range, acceleration and price.
So maybe Apple will just give up the idea of making their own car.
What Apple could do instead is to integrate Tesla’s cars into the iOS ecosystem, provide A13x processors, iPad displays(heck just put an actual iPad into the car), modems and bring valueable knowhow in computer security, camera design and mass production. And to bankroll a more aggressive rollout of gigafactories.
The value of the ride sharing market is huge:
White Paper: Why Self-Driving Cars Could Change Everything
If Tesla&Apple manages to capture 50% of the market, that would be a $2T market cap in five years,
So how would they do it? Tim cook could offer to buy 50% of Musks 40M shares, let Musk have voting rights for these for 5 years(enough time for him to get them back from his bonus program), and in addition buy another 20M newly minted shares for $300 each to a cost of $12B, Apple would then have a 25% share of TSLA and get exclusive rights to integrate their iOS ecosystem in the Tesla vehicles. They would get a share of Tesla’s profits and also get a lot of hardware sales and iOS users etc. Tesla can make some Maxwell batteries for Apple’s product line and help Apple move more production to America. Tesla vehicles can even help Apple update Apple Maps with street view and Navigation.
To me this seems like a pretty good investment for Apple and there are a lot of synergies between the companies.
Tesla’s long term mission is to accelerate transition to electric cars. However Tesla today is so far ahead, in terms of production numbers, range and costs, that it is very hard to competitors to compete with Tesla without losing money. Apple can’t really enter a market half assed, the risk for Apple is that they release a car and once they start to manufacture it at scale it is worse than what Tesla is currently offering in terms of range, acceleration and price.
So maybe Apple will just give up the idea of making their own car.
What Apple could do instead is to integrate Tesla’s cars into the iOS ecosystem, provide A13x processors, iPad displays(heck just put an actual iPad into the car), modems and bring valueable knowhow in computer security, camera design and mass production. And to bankroll a more aggressive rollout of gigafactories.
The value of the ride sharing market is huge:
White Paper: Why Self-Driving Cars Could Change Everything
If Tesla&Apple manages to capture 50% of the market, that would be a $2T market cap in five years,
So how would they do it? Tim cook could offer to buy 50% of Musks 40M shares, let Musk have voting rights for these for 5 years(enough time for him to get them back from his bonus program), and in addition buy another 20M newly minted shares for $300 each to a cost of $12B, Apple would then have a 25% share of TSLA and get exclusive rights to integrate their iOS ecosystem in the Tesla vehicles. They would get a share of Tesla’s profits and also get a lot of hardware sales and iOS users etc. Tesla can make some Maxwell batteries for Apple’s product line and help Apple move more production to America. Tesla vehicles can even help Apple update Apple Maps with street view and Navigation.
To me this seems like a pretty good investment for Apple and there are a lot of synergies between the companies.
