Recently, some rumors have emerged about Apple's desire to buy Tesla, after several websites published news of Tim Cook's meeting with “Elon Musk”, CEO of Tesla, months ago. The market value of Tesla is about $ 24 billion, which makes this behavior difficult to believe about Apple, which is known for its hatred of the policy of acquisitions, especially with large companies such as Tesla, but in the coming lines we will explain why this news may not be strange at all.

Tesla-Apple


What is Tesla

Before we talk about Apple should buy Tesla, it must be known first.

Tesla is a car company that currently has one model called "S", which is characterized by three things, namely luxury, sporty performance, and is also powered by electricity. The car is distinguished by that it can be charged from any electrical source, whether charging stations or regular home electricity. The company achieved a series of losses at the beginning, but in 2013 it managed on the right path and achieved great financial profits. The company is valued at $ 24 billion and has an impressive future.

As for the reasons that push Apple to acquire Tesla, they are:


Great liquidity

Apple has not yet found the ideal utilization of its available liquidity, which is estimated at approximately $ 160 billion. During the past period, Apple repurchased its shares from the stock market for about 40 billion dollars, in addition to shares worth 20 billion dollars, which Apple intends to buy back in the future, and this makes the remaining liquidity with Apple more than enough to fully purchase Tesla, which is preparing for a stage of great growth and development in the coming years. Apple's failure to exploit the money was a matter of dispute, and it reached the point of filing lawsuits against Apple to force me to distribute the money to investors if it was not going to use it.


Great opportunity and a product of a new category

The automotive industry is distinguished by its high-value product, and whoever studies the auto market finds that development in it is relatively slow compared to the modern technological breakthroughs in the field of phones and computers. It is possible that the Tesla S, which is the company's flagship car - the only car now - in the automotive field, could achieve the same as what the iPhone did in the field of mobile phones in 2007.

In the past period, investors have expressed their concern about the future of Apple in addition to their doubts about the company's ability to innovate, especially after the decline in the market share of Apple, whether in the field of smartphones and tablets, which pushes the company to search for new markets to enter it, and Tim Cook has more than once hinted about his determination. Apple is developing new products. It may seem at first glance that the car industry is completely different from the electronics industry, but this difference began to gradually diminish as a result of the merging of technological hardware and computers and the addition of new features such as autonomous driving and acoustic control, the car became closer to the computer than just a means of transmission.


Steve has always wanted to make a car

During an interview that Steve Jobs had in his office before his death with John Markov, a journalist for the New York Times, he said that if he had the necessary energy and effort, he would have conquered Detroit with his Apple car. Perhaps there was a perception within Apple of a car and the company operating on initial lines, and Jobs and his team found that there were needs that were not available at the time.


Elon Musk is another Steve Jobs

Tesla

Tim Cook ran his post-Jobs period well, but he had no presence, charisma, or creativity Steve Jobs. On the other hand, Tesla Executive Director, Elion Musk, was able to create a state of creativity around him, like that of Jobs. Likewise, "Elion Musk" is like Jobs, where his dreams and ambitions are beyond imagination, so that they literally reached space in Space X project Who comes in cooperation with NASA in spaceflight. Hence, the joining of Musk to the Apple team is a sign of reassurance to investors who are skeptical of Apple's ability to innovate.

Elon Musk, for those who do not know him, besides he founded Tesla and then the Space X space project, there is another company he founded and we all know it, which is the electronic payment giant "PayPal". This reminds us of the meeting he held with Tim Cook this year and in which he expressed his desire to discover new payment methods, but the risk is here. Tim Cook said this might encourage investors to seek out Mask as the new CEO of Apple.


Watch your competitors well

Several years ago, Google started partnerships with some car manufacturers to create a self-driving car and knew that project globally and helped establish Google's image as a company capable of innovation, and if Apple is watching this, then I think it may want to enter the car market to annoy its archenemy Google, but Apple will probably not want to Establishing partnerships with manufacturers, but you would prefer to acquire a car manufacturer in order to have the ability to control the smallest design details.


In a parallel world they manufacture a car called "Tesla Model S"

If you look at the Tesla Model S, you will find the extent of the similarity in the general spirit between it and Apple products, as the car comes with a design that combines magnificence, beauty and simplicity, which reflects Tesla's interest in design with keen attention to the smallest details in addition to the highly developed technological hardware built into it.

As Apple, Tesla depends on itself in selling its product and refuses to sell its product outside its showrooms, in order to control the quality of the customer's experience with its product, which helps to establish a strong relationship between the company and the customer.


A shared interest in the environment

We all know how Apple in every new product launch event is interested in explaining how the company has made an extra effort to make its product environmentally friendly and recyclable. Last year, the company appointed "Lisa Jackson" to be in charge of the company's clean technology initiative.

On the other hand, Tesla has succeeded in making the term clean technology linked to its name. The company basically aims to manufacture an environmentally friendly car, as the Tesla car works with electricity, and you can even charge it from any electrical source, even the traditional “plug” from which you charge the phone in your home. You can charge the car with it.


Had Tesla taken advantage of Apple's resources?

In 2008, Tesla was on the verge of collapse. The company is in a better position now, but it still has plenty of room to grow and develop.

Tesla produced about 156,900 cars during the last quarter of last year, and these numbers are constantly doubling. Here comes the role of Apple, which sold 51 million iPhones and 26 million iPads in more than 100 countries around the world during the same period last year. Tesla's experience in manufacturing, managing giant production lines, contracting suppliers to supply tens of millions of parts per day, and a giant network of thousands of outlets affiliated with the company. Tim Cook was previously Chief Operating Officer (COO) at Apple and was known for his ability to manage manufacturing operations very efficiently.

Tesla now sells its Model S between 70 and 90 thousand dollars, which is a high price compared to most cars - more than the most expensive Lexus cars, for example - but in the coming years it aims to produce a car with 30 thousand dollars to compete with the middle class cars. If Tesla takes advantage of the expertise of Apple and Tim Cook, then Tesla may be able to achieve it in less time and perhaps at a lower price as well. Imagine even adding a touch of creative Apple designer Johnny Eve to Tesla cars.

It is worth noting that last October, Tesla hired a former vice president of hardware engineering for Apple, Doug Field, to head its own automotive development program, which indicates that Tesla knows it can learn from Apple.


Conclusion

  • Apple is looking for a new creative CEO, and Elion Musk is another jobs.
  • Apple focused in the automotive world and launched CAnd Tesla is an ideal partner for her.
  • Apple is struggling with the power and batteries problem, and Tesla is designating a car with "electricity".
  • Apple has a vision for the online buying ecosystem, and the manager of Tesla is the founder of the giant PayPal.
  • Tesla wants to go global, and Apple operates the largest transfers and charges of devices around the world.
  • Tesla is interested in nature conservation and so is Apple.
  • Apple devices are a standalone concept in the world of phones and computers, and so is Tesla in cars.
  • Google has begun to focus heavily on the automotive world, and it is unreasonable for Apple to leave it to it.

last word:

"Elion Musk" confirmed in a telephone interview with one of the channels that he had already met Tim Cook to study the cooperation between the two companies, but he evaded commenting on "Was Apple's acquisition of his company discussed?" And when he was asked what if Tim Cook told him that they would build a single car He laughs, saying:I will tell him this idea is great"

The interests of Apple and Tesla are one, but Apple's transition to the world of cars may take years, but if Apple thinks about entering this field, the best option is Tesla

What do you think of Tesla and its CEO, Eleon Mask? Do you think that Apple should cooperate extensively with it, even if there is no acquisition here?

Article author | Ahmed Yahya

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