Why limit yourself to one apex technology when you can have two? This is the thought of some influential financiers when considering acquisition opportunities for the most capitalized company in the world, Apple.
A growing number of bankers and investors are searching for ways AAPL can put their huge cash reserves to work, and one brave soul has even sent a letter to Tim Cook arguing the potential benefits that would come with a buyout of cutting-edge, electric car leader, Tesla.
While it is a long shot at the moment, there are some convincing arguments for the partnership, both from a financial and environmental standpoint. On a large scale, this could could help reignite the auto industry in the United States, while catalyzing the transition from combustion engines and hybrid vehicles to their cleaner, electric counterparts.
Following the death of Steve Jobs, Apple has been in need of a creative, visionary infusion in order to meet lofty expectations. Tesla affords this in Elon Musk, the design genius who was co-creator of PayPal, and lead engineer at SpaceX. This would offer AAPL the ability to link the chain of innovation that has become their bread and butter over the past decade.The transition would also require minimum pain, considering that both Apple and Tesla have a surprisingly similar business model due to Musk’s interest in keeping his company as nimble as possible.
With Google proceeding full force in both the tech and transportation realm, they are certainly looking to stay on the forefront of business, with very few peer competitors at the moment. A Tesla acquisition has the potential to bring Apple to parity with Google, while offering a new area of profit that has already proven lucrative. Apple’s shift into the auto sector could give them the kind of revenue growth that simply isn’t sustainable from iPhones and other mobile devices over the longer-term, all while giving the electric car industry a chance to make big strides in little time…which is essential.
Having Apple as support would also likely allow Tesla to increase their ability to engage in direct sales to customers, an issue they have been struggling with over the past few years when trying to work with dealership groups (who have powerful political lobbies). Apple backing could help by upgrading the retail experience and establishing a direct-sale model on a wider scale.
Of course, wishful thinking allows for many otherwise unlikely possibilities. Some of the major roadblocks to consider would have to do with Elon Musk himself. Would such an independant mind be willing to be taken over by Apple? Or does the partnership offer enough middle ground to be viable in the metagame, or is this a case of putting on rose-colored techno-blinders?
While such a buyout would likely help scalability and price, it must work for both companies. As the electric car industry is navigating its vital infant years, help from one of the strongest enterprises in the world could have a hugely positive effect on sustainable energy and transportation moving forward.