Yes, in theory Apple could buy Tesla.
The company recently announced their earnings for the previous quarter and revealed a whopping $203 billion in cash on hand, and some analysts like Gene Munster at Piper Jaffray think Apple should put that money to good use and buy Tesla.
Now, this isn’t a new suggestion. Shareholders were the first to suggest it back in March, 2015, but Munster reiterated the idea in a recent Bloomberg Radio interview.
“To me, when you think about that absurd amount of cash, you have to go after opportunities,” said Munster.
“If they would go the Tesla route, and if Elon Musk would step aside, which those are two big ifs, then it would make structural sense for them to do that,” he added.
However, there are a few factors holding this kind of deal at bay, not the least of which is the point Munster made above: Elon Musk may simply not be willing to sell at all!
The other obstacle is that Apple, given its past technological record, might prefer to make its own electric car rather than buying out another company for one.
Rumors have been spreading recently about Apple planning their own driverless electric vehicle. Numerous sources have reported Apple raising R&D spending, hiring auto-industry experts, and at one coding conference in May, the company’s operations chief Jeff Williams reportedly said, “the car is the ultimate mobile device.”
Still, signs are point to the tech giant aiming to make its mark in the automotive industry, and the hypothetical project has even been given a name: Project Titan.
With competition like Tesla and Google (NASDAQ: GOOG), maybe it’s better that Apple is trying to keep such a project under wraps.
To continue reading…
Click here to read the Business Insider article.
Until next time,
Keith Kohl
Check us out on YouTube!A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
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