Tesla CEO Secretly Meets With Apple’s Merger and Acquisitions Chief


Tesla Secretly Meets With Apple

Tesla Secretly Meets With Apple

The San Francisco Chronicle is reporting that Apple’s merger and acquisitions chief, Adrian Perica met with Tesla Motors’ CEO Elon Musk last year at the time when rumors had hit the Internet suggesting that perhaps Apple would buy out Tesla.

Elon Musk Examines a Hood - After Which He Meets With Apple

Elon Musk Examines a Hood – After Which He Meets With Apple

The Chronicle credits “an anonymous source” for coming forward with this information now.  As the Chronicle suggests, this high-level meeting showed that Apple was interested in striking up some sort of merger or acquisition deal with Tesla.

The Apple-Tesla tie up idea was the subject of much speculation last year.  Adnaan Ahmad, an analyst at the investment bank Berenberg, even wrote a letter to Apple’s CEO Tim Cook.  That letter called upon Apple to purchase Tesla as a way to make better use of its billions in available funds.

As far as we know, nothing has come of the Apple-Tesla meeting, meaning that neither side has ever stated anything on the record suggesting that some deal is pending.

Again, we must re-iterate the fact that the Chronicle cites an “anonymous source,” which leads us to question the validity of the article.

Source: SF Gate

Categories: Tesla


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26 Comments on "Tesla CEO Secretly Meets With Apple’s Merger and Acquisitions Chief"

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By SEC regulations, all merger/acquisitions talks are subject to insider trading regulations. Any information regarding this sort of activity would either need to be shared publicly in SEC filings or in press releases for all investors to see, or be kept private.

I think Steve would love the idea of Apple and Tesla merging.

If given access to that much liquid cash, and a combine Apple/Tesla cult following, I think Tesla could surprise us all with what it comes out with. And if you think about it, Tesla is doing to transportation what Apple did to music.

Maybe Apple wants to buy back some of their GUI folks from Tesla, since the vehicle’s digital interface has a much better design than the infamously hideous iOS 7.x for the iPhone? 😉

You know the opposite would happen. That being said, if this acquisition happened (I don’t think it will), Apple would leave the touch-screen alone, at least for a while, because it runs on Tegra hardware. iOS would have to be recompiled to run on that platform.

Tesla could use Apple’s help to design their interior. It’s the MS weak point, I think. It’s a bit too “utilitarian”.

Please explain why you would you expect Apple to make something less utilitarian in design??? Are there examples of recent non-utilitarian hardware designs of theirs, hiding someplace, as examples???

I just think that the MS interior is lackluster. I’m not the only one saying it. The disconnect with the outside appearance and performance of the car in underwhelming. The seats are below par, and what’s up with that huge bin below the center stack? The touchscreen for all the controls is clever, for sure. I would love that in my Volt. Overall, it lacks emotional appeal, contrarily to the rest of the car. Just my opinion.

The seats have already been given an upgrade this month.

Next year there will be a Sports Seat option. So they are more like the German seats in BMW and MB.

Soon there will be a drop in center console option to fit below the center stack.

The original model ,with a low number of cup holders unable to take a Super Big Gulp and no cubbie holes/nets for storage was the singular vision of Elon Musk. Elon wanted uncluttered design. For example no reading light because he reads e-books. No coat hangers in back because he does not use them. He drinks 12 oz cans of Diet Coke or 12 oz water bottle from Costco so no Super Big Gulp holders. Many if not most of these items will change with customer feedback.

And Tesla does not need Apple to adjust. Elon’s singular vision also gave us the pop out handles, adjustable suspension, and the 17″ touchscreen.

The fit and finish of the interior will get better as Tesla factory workers become more proficient at their jobs, Apple does not have anything to teach Tesla about screwing together a car.

Please explain why you would you expect Apple to make something less utilitarian in design??? Are there examples of recent non-utilitarian hardware designs of theirs, hiding someplace???

With former Burberry CEO Angela Ahrendts coming on board with Apple, maybe that isn’t such a stretch after all…

I will say this. A company I used to work for, which went belly-up full BK in 2011, discussed being bought out by IBM, Hewlett Packard and Oracle. They even told stockholders about these meetings. It allowed for a short term price spike of the stock (yes, it was a public company) while the owners of the firm quietly sold blocks of shares for weeks on end.

Meeting with a company to consider buyout when the pps was in the $30’s range and today we have stock boards saying “Apple is buying Tesla now!!!” at $200. Ridiculous that they use this meeting last year to pump up today’s stock price. If you are a stockholder, do consider your options.

It’s no secret Tesla stock couldn’t be more over valued. The correction is coming so use caution.

I wouldn’t use the term “over-valued”. I would say that TSLA has a significant number of future successes already priced into the stock.

The difference is that a company that is called “over-valued” typically doesn’t have the type of potential for future growth that a company like Tesla currently has. When a stock has huge potential for an upside, it is more accurate to say that those upsides are already priced into the stock.

As for volatility, that is pretty much a given any time future earnings are priced into a stock long before they are realized. But again, I wouldn’t use the term “correction” instead of describing the stock as “volatile”. Correction again implies little potential for upside in the corporation. I agree that there will be volatility, but I don’t think I would characterize that volatility as a “correction”, because the value of the company based upon historic sales, and the value of the company based upon projected future sales are just way too far apart.

Apple better hurry or Comcast may buy Tesla instead! 😮

Sell it to Apple and they will double the price and reduce the performance to half.

What the story fails to mention is that Tesla / Elon also met with Google.

Elon has several friends at Google and has met with them on numerous occasions. That’s a known fact, though it’s never been reported that his “meetings” with his friends at Google have anything to do with Tesla Motors.

This “story” will counteract the Toronto fire story for the earnings call leadup.

One thing, though, Tesla Gigafactory(?) is going to need a lot of capital and scale. Seems like Apply and Tesla would converge there?

Does Elon talk about the Gigafactory again or move on? Any thoughts?

Eric – just to clarify I meant to say the SF Gate story failed to mentioned there were meeting(s) with Google as well. Not your that your story failed. 🙂

It is the fiduciary duty of all Boards of Directors to always be discussing potential mergers/acquisitions with potential suitors who might increase investor profits. Even if the company has no plans what-so-ever to proceed forward.

This happens every day, with every board of every publicly traded corporation. It is done in 100% secrecy, because SEC regulations don’t allow for this information to be leaked out where one person/party or another might have a stock trading advantage.

I would suspect that the Tesla board has fulfilled their fiduciary duty to investigate mergers/acquisitions with a broad number of potential suitors, since they could be sued by investors if they failed to do so.

This is the reality of the corporate world, and publicly traded corporations.

If they wanted to merge with a smart phone company, Samsung might be a better choice. They have more than just electronics manufacturing experience, for example, Samsung Heavy Industries building things like massive commercial ships. They even have experience building cars in their “Renault Samsung Motors” partnership.

Tesla already hired away some of Apple’s best talent for the areas where Apple’s talent would best help Tesla. No reason to buy the cow, when all you want is the cream.

Let see … who to partner with?

1) Apple, a beloved American success story that has revolutionized the computer industry, the music industry, and the cell phone industry.

2) Samsung, an extension of the Korean mafia that has used ruthless, dishonest, and illegal business practices to become dominant.

Answer: Neither one, because neither makes any sense. 🙂

I agree.

This will never happen. While both companies have a great brand and a cult like following, there really isn’t much synergy. Apple deals in super high volume production of low (er, relatively) cost items. Tesla deal in low volume production of very high cost items. UI is important but I don’t see Elon selling to get that. And I don’t see what Apple gains from this transaction. No doubt they would have to pay a premium over FMV, say $30B. Way too much.