Apple Said to Have Made 'Serious Bid' of ~$240 Per Share to Acquire Tesla Around 2013

Discussion in ' News Discussion' started by MacRumors, May 21, 2019.

  1. MacRumors macrumors bot


    Apr 12, 2001

    It has long been rumored that Apple plans to compete in the electric vehicle market in some capacity, ranging from supplying other automakers with underlying technologies to developing its own vehicle entirely, and new information suggests that Apple may have been eyeing a major acquisition to boost its efforts.


    Namely, Apple is said to have made a "serious bid" for Tesla around 2013, offering around $240 per share. That's according to Craig Irwin, a senior analyst at investment firm Roth Capital Partners, who said he has "complete confidence" in this information, but he doesn't know if the bid reached a "formal paperwork stage."

    "Around 2013, there was a serious bid from Apple, at around $240 a share," said Roth, speaking on a CNBC video highlighted by AppleInsider. "This is something we did multiple checks on. I have complete confidence this is accurate."

    "I don't know if it got to a formal paperwork stage, but I know from multiple different sources that this was very credible," he added. "So, right now, Apple is building multiple, very large dry rooms in California... they're doing something interesting and exciting on the battery side... Project Titan is absolutely not dead."

    Tesla had 114.5 million shares outstanding as of January 31, 2013, and that number increased throughout the year, so Apple's bid would have totaled at least $27.4 billion at the time. Now, the electric vehicle maker's shares are trading around the $203 mark, well below Apple's reported bid years ago.

    Tesla's technologies and facilities, including its assembly plants in California and Nevada, certainly would have helped Apple's so-called "Project Titan" automotive ambitions in big ways, but the extent of Apple's plans are still unclear.

    A recent report said Apple is seeking LiDAR units that are "smaller, cheaper and more easily mass produced" than current systems, which can cost over $100,000 and are considered "too bulky and prone to failure" for use in mass-produced vehicles. Apple is said to be "setting a high bar" with demands for a "revolutionary design."

    Last year, Apple rehired its former VP of Mac hardware engineering Doug Field to work on Project Titan after a five-year stint as Tesla's engineering chief. Apple has a team of about 1,200 employees working on the project, according to court documents, but recent restructuring led to 190 layoffs.

    Apple has been developing and testing autonomous driving software out on the streets of Cupertino, California using Lexus SUVs since early 2017. It's still unclear if we'll ever see a so-called Apple Car, but analyst Ming-Chi Kuo believes a release wouldn't be until 2023 to 2025 either way.

    Article Link: Apple Said to Have Made 'Serious Bid' of ~$240 Per Share to Acquire Tesla Around 2013
  2. ryanwarsaw macrumors 68020


    Apr 7, 2007
    Thankfully they didn't get it and avoided the Tesla Trainwreck on autopilot.
  3. DeadSeaMac macrumors member


    Sep 18, 2013
    Not surprised at all to hear this news 6 years after the fact. If true, then Musk refusing Apple's offer proves he was smoking "something" back then.

    And sorry Ming-Chi, there will be no Apple Car by 2025. Put that in your pipe and smoke it!
  4. twocents macrumors regular


    Mar 31, 2016
    California, USA
    It would have been interesting in an alternate timeline where Elon Musk is acquired as Steve Jobs was with NeXT to ultimately become CEO. Elon would definitely bring a different style of leadership than Tim
  5. iAVERY macrumors regular

    Sep 11, 2016
    Do ittttttt. Apple can afford to mess something up. Buy Tesla and let apple CFO straighten everything up. Tesla autopilot married to CarPlay = apple car.
  6. realeric macrumors 65816


    Jun 19, 2009
    United States
    Apple Car = You can't fix your car yourself or $50,000 for a refurbished vehicle for each out of warranty repair.
  7. Sasparilla macrumors 65816

    Jul 6, 2012
    That's interesting. Apple probably would have put some stability / discipline / production knowledge in place and Musk probably would have fled (cause he wouldn't have been able to stand not micromanaging things). Tesla would be a very different company at this point if that had happened (no $35k promises from an Apple Tesla) - but they'd probably not be rolling from crisis to crisis (or financial knife edge to knife edge) either - would have had plenty of money to expand their product line. JMHO...
  8. ftaok macrumors 603


    Jan 23, 2002
    East Coast
    Just doing the math here, which is woefully incomplete.

    TSLA has 177.3 million shares outstanding currently (per Yahoo finance). At a $203 share price, the market cap is $36B.

    So even though the share price is lower now than when Apple was bidding on it, it would cost Apple more to buy TSLA now than it did in 2013.

    Very misleading paragraph and probably should be updated.
  9. NoHardFeelings macrumors newbie


    Dec 4, 2016
    Had Apple made an Apple Car, the Series 3 would have be priced starting at $99,999 instead of $35,000.

    The car would also come with a notch ;)
  10. taptic macrumors 65816


    Dec 5, 2012
    I have a hard time believing Apple could straighten Tesla up better than they already are. Tesla has that drive to make something amazing. Apple seems to be mainly interested in their stockholders.
  11. sinsin07 macrumors 68040

    Mar 28, 2009
    And so what.
    You could bring in a monkey and that would also be a different style of leadership than Tim.
    The question in your alternate timeline is would Elon be a good fit.
  12. jeyf macrumors 65816

    Jan 20, 2009
  13. Relentless Power macrumors Penryn

    Relentless Power

    Jul 12, 2016
    Interesting this article surfaces, just as yesterday as it was reported Tesla stock had dropped 4.4% yesterday.
  14. Dulcimer macrumors 6502a


    Nov 20, 2012
    Different for sure. And IMO a far worse one.
  15. satchmo macrumors 68020

    Aug 6, 2008
    I would rather Apple develop something different than be just another player in the autonomous vehicle space.

    Maybe something a safe one person electric vehicle like the Solo, but better looking.
  16. Plutonius macrumors 604


    Feb 22, 2003
    New Hampshire, USA
    It should be okay as long as it doesn't have a keyboard to operate it :).
  17. Lazy macrumors 6502

    May 27, 2003
    Silicon Valley
    I don't believe it at all. Saying things like "serious bid" but with no "formal paperwork" and "drive room" whatever that means doesn't sound credible. Especially when coming from someone and some company no one's ever heard of. Doesn't sound like this guy even knows how acquisition offers are done.
  18. DaveP macrumors 6502


    Mar 18, 2005
    Probably more serious than the 420 "offer" the Saudis made.
  19. farewelwilliams macrumors 68020

    Jun 18, 2014
    missed opportunity. Model 3 is the best car I've ever driven. 100% satisfied with the purchase.
  20. realtuner macrumors 6502a


    Mar 8, 2019
    If the rumor is true, good thing it never went through. Only thing Tesla has of any value is their name brand. Nothing in their cars is groundbreaking or better than what other automakers already have access to.
  21. sinsin07 macrumors 68040

    Mar 28, 2009
    It already has a notch, the front end. :p
  22. realtuner macrumors 6502a


    Mar 8, 2019
    I’ve spent extensive time in all Tesla vehicles. You must have a low bar to consider it the best you’ve ever driven.
  23. wigby macrumors 68000

    Jun 7, 2007
    Apple already did make many amazing things and Tesla is currently struggling. Apple is searching for the next big thing which is why an Apple/Tesla car rumor will not die. Apple prices many customers out of the market but is also very conservative in their marketing and engineering promises, unlike Tesla. I could easily see Apple absorbing Tesla (back in 2013 or today) and cleaning house in order to introduce an Apple Car by 2025.
  24. MacDaddyPanda macrumors regular


    Dec 28, 2018
    USA, CA
  25. farewelwilliams macrumors 68020

    Jun 18, 2014
    Considering the instant torque and the smooth ride from an EV blows out any gas car I've ever driven, what other EV car would you suggest?
    I've driven the Model S. Performance is better but I don't like the Model S due to the interior looking extremely dated. Would gladly choose a Model 3 over the S.

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