Apple made informal bid to buy Tesla at $240 per share in 2013
Apple's automotive ambitions could have been augmented with the acquisition of Tesla, an analyst claims, with the iPhone maker said to have made a "serious bid" to buy the electric car producer in 2013, a move that could have brought technology developed under "Project Titan" to commercialization far earlier.
Tesla Model X
Apple has seemingly harbored plans to produce its own brand of vehicle -- or < ahref="https://appleinsider.com/inside/apple-car">Apple Care -- for some time under the codename "Project Titan," though speculation has hinted at the possibility of Apple using its massive resources to get a head start in the market by purchasing an auto manufacturer instead of working entirely from scratch. According to a recent TV interview, it seems Apple tried to do just that.
Speaking on CNBC on Tuesday, Roth Capital Partners analyst Craig Irwin claimed Apple made a "serious bid" to purchase Tesla, around 2013, with the offer supposedly in the region of $240 per share. It is unclear how far along the alleged negotiations went, such as a "formal paperwork stage" that would signal an intent to purchase.
While there is only the word of Irwin that the bid was made, he insists "multiple checks" were made with multiple sources, and he has "complete confidence" that it is "credible." At this time there is barely any evidence or other claims that such a bid existed at all.
A profile of Apple's mergers and acquisitions chief Adrian Perica in February 2014 included references to a meeting between Tesla CEO Elon Musk and Apple CEO Tim Cook in Cupertino in 2013, at around the same time as a German analyst wrote an open letter to Cook suggesting an Apple purchase of Tesla. That report cited multiple sources about the supposed meeting, but again with little proof it actually took place.
If Apple is still interested in acquiring a manufacturer to make its own vehicle, the televised segment suggests Tesla could be a good target for such a purchase once more, as the price has dropped down far enough to make it an attractive target. At the time of publication, Tesla is hovering at around $205 per share, far below the $240 supposedly bid six years ago by Apple.
Tesla's share price has taken a beating over the last six months, and is currently close to half the $376.79 recorded for the stock on December 13. The pain could continue for the Elon Musk-led company for a while longer, as the note proposed a worst case scenario of Tesla's stock dropping to just $10.
Irwin's declaration about Apple continued with the claim "Project Titan" is still very much alive, including the continued development of advanced battery technology for use in future vehicles.
So far, Apple's public vehicular efforts have revolved around Lexus, with the manufacturer's cars used as a testbed for "Project Titan's" self driving systems. Volkswagen has also been linked to another effort dubbed PAIL, or Palo Alto to Infinite Loop, a project that uses modified T6 Transporter vans to shuttle employees between Apple offices.
Apple was also reportedly in sporadic talks with luxury automakers BMW and Mercedes-Benz since 2015, potentially to co-develop an all-electric self-driving vehicle. Discussions with both firms seemingly died out over intellectual property concerns, though other talks have also allegedly taken place with Nissan, China's BYD Auto, McLaren, and Magna Steyr.
Tesla Model X
Apple has seemingly harbored plans to produce its own brand of vehicle -- or < ahref="https://appleinsider.com/inside/apple-car">Apple Care -- for some time under the codename "Project Titan," though speculation has hinted at the possibility of Apple using its massive resources to get a head start in the market by purchasing an auto manufacturer instead of working entirely from scratch. According to a recent TV interview, it seems Apple tried to do just that.
Speaking on CNBC on Tuesday, Roth Capital Partners analyst Craig Irwin claimed Apple made a "serious bid" to purchase Tesla, around 2013, with the offer supposedly in the region of $240 per share. It is unclear how far along the alleged negotiations went, such as a "formal paperwork stage" that would signal an intent to purchase.
While there is only the word of Irwin that the bid was made, he insists "multiple checks" were made with multiple sources, and he has "complete confidence" that it is "credible." At this time there is barely any evidence or other claims that such a bid existed at all.
A profile of Apple's mergers and acquisitions chief Adrian Perica in February 2014 included references to a meeting between Tesla CEO Elon Musk and Apple CEO Tim Cook in Cupertino in 2013, at around the same time as a German analyst wrote an open letter to Cook suggesting an Apple purchase of Tesla. That report cited multiple sources about the supposed meeting, but again with little proof it actually took place.
If Apple is still interested in acquiring a manufacturer to make its own vehicle, the televised segment suggests Tesla could be a good target for such a purchase once more, as the price has dropped down far enough to make it an attractive target. At the time of publication, Tesla is hovering at around $205 per share, far below the $240 supposedly bid six years ago by Apple.
Tesla's share price has taken a beating over the last six months, and is currently close to half the $376.79 recorded for the stock on December 13. The pain could continue for the Elon Musk-led company for a while longer, as the note proposed a worst case scenario of Tesla's stock dropping to just $10.
Irwin's declaration about Apple continued with the claim "Project Titan" is still very much alive, including the continued development of advanced battery technology for use in future vehicles.
So far, Apple's public vehicular efforts have revolved around Lexus, with the manufacturer's cars used as a testbed for "Project Titan's" self driving systems. Volkswagen has also been linked to another effort dubbed PAIL, or Palo Alto to Infinite Loop, a project that uses modified T6 Transporter vans to shuttle employees between Apple offices.
Apple was also reportedly in sporadic talks with luxury automakers BMW and Mercedes-Benz since 2015, potentially to co-develop an all-electric self-driving vehicle. Discussions with both firms seemingly died out over intellectual property concerns, though other talks have also allegedly taken place with Nissan, China's BYD Auto, McLaren, and Magna Steyr.
Comments
For two reasons: it would give Tesla the shot in the arm that they need to really buck the market with the financial clout that a giant such as Apple behind them would provide, and also, it would free Tesla of the increasingly unstable Musk whose antics only seem to be harming a company with decent products and design.
If electric cars become a passing fad Tesla fails.
So either way Tesla fails.
High-end manufacturers have just started to manufacture real EVs to compete with Tesla, and so far, Tesla is far superior in drivetrain technology, battery supply and IP belonging so batterychemistries, as well as having vertical integration in their battery supply, which today is as essential, as making your own engine as an ICE manufacturer once was. Drivetrain vehicle efficiency is also way better than most of its competitors, meaning, Tesla can make EVs that travel further on less energy, meaning they can put smaller/cheaper batterypacks in the vehicles, to match thos of its competitors, as well as having 8+ years of experience in EVs in general, knowing what to expect of service needs etc.
VW is finally walking the walk, later this year (so actually still talking the talk), and will start production of their ID.3 later this year, with deliveries starting early next year. And although they have promised millions and millions, their initial production capacity will only match that of Hyundai or KIA, which produce some 30.000 units a year. Tesla makes 10-15 times more annualy...or approximately the same ONE month. And before you go and say that all the other manufacturers only have to switch over to simple EV production, and Tesla will be doomed (ok, you already stated this), then I can tell you, that battery supply isn't exactly exceeding demand right now, so there's a huge constraint right there, and it won't be solved within the next few months wither. Again, Tesla has a huge leg up over the established manufacturers there.
https://www.extremetech.com/extreme/291618-elon-musk-tesla-out-of-money-in-10-months-without-hardcore-cost-reduction
Musk is a charlatan. It was an awesome opportunity but he squandered it. The window to make Tesla a success has been slammed shut. The best exit at this point is to hope someone swoops to buy and puts a floor on the stock. Hopefully it is not Apple - the unquantified liabilities (autopilot safety, lack of in-market service/repairs, product quality issues) could be bigger than any purchase price.
$TSLAQ
I've had 2. Had the S, sold it and bought an X. Terrific cars, love 'em, and I could never go back to driving a gas car after owning one. Haters gonna hate, but once you drive one, anything else just seems terrible.
Don't pass judgement until you get behind the wheel of a Tesla and try it out, they are amazing.
It could have been an amazing car company. But Musk has ADD. Tesla should have brought in a top notch operation person in as CEO 3 years ago and moved Musk to CPO or Chairman. A CEO who could have come in and been an operations terror and capitalized this company the right way. What a lost opportunity. The BOD should be sued for being so morally bankrupt.