Tesla CEO Confirms 'Conversations' With Apple, Says Any Acquisition 'Very Unlikely'

[MacRumors]

Following a report earlier this week suggesting Apple had considered purchasing Tesla, Tesla CEO Elon Musk today confirmed in an interview with Bloomberg Television that his company "had conversations" with Apple. Musk went on to say that he could not comment on whether the conversations had revolved around any kind of acquisition, but he did confirm that at the current time, an acquisition of Tesla seems "very unlikely."

If one or more companies had approached us last year about such things there's no way we could really comment on that. We had conversations with Apple, I can't comment on whether those revolved around any kind of acquisition.

News of Apple's meeting with Tesla first came to light over the weekend, when the San Francisco Chronicle reported Musk had met with Adrian Perica, Apple's head of acquisitions, and possibly Apple CEO Tim Cook. While the site speculated the meeting pertained to a possible acquisition, other sources have since suggested Apple may have been meeting with Tesla over iOS device integration in the company's electric cars or about a potential battery deal between the two.

As noted by The Los Angeles Times, Musk last month announced plans for a massive lithium-ion battery plant, which will be constructed in partnership with "some other companies." Tesla is expected to make an announcement about the plant later this month, and it's possible Apple, which uses lithium-ion batteries for many of its portable devices, could be involved in that venture.

​

When asked whether Tesla was for sale, Musk told the interviewer that an acquisition was unlikely because the company needs to stay "super focused" on its goal of creating an affordable electric car, though he did not rule out the possibility of an acquisition entirely.

If there was a scenario where it seemed like it would be more likely that we would be able to create the mass market sort of affordable, compelling car then possibly it would make sense to entertain those discussions. I don't currently see any scenario that would improve that probability, so that's why I think it's very unlikely.

Apple CEO Tim Cook recently said the company is open to making large acquisitions if it makes sense, but he has also said that Apple will focus on the very few products that "deserve all our energy." Apple currently holds nearly $160 billion in cash while Tesla has a market cap of approximately $24 billion.

Article Link: Tesla CEO Confirms 'Conversations' With Apple, Says Any Acquisition 'Very Unlikely'

 

[SilverL]

I'd say more like excellent battery tech.
Here's hoping it happens, and has iCar as well.

Can't wait to get my Model S soon!

 

[-LikesMac-]

Haha.

Wow, news have got themselves all coiled up here.

I kid, I kid. What would Apple do with Tesla, though? Make an electric iCar?

 

[CFreymarc]

Odds are these Apple / Tesla talks are about getting "iOS in the Car" designed into the next model years of Teslas. The Tesla X may be the first to ship with iOS in the Car.

They are local to Apple and don't have the decades of Not Invented Here that way too many automotive manufactures have towards their center electronic stacks.

 

[Jacksonc]

Maybe Apple and Tesla will work together to make a "smart" car.

 

[goobot]

Apple isn't going to buy them.

 

[thetechnologist]

Do it, Apple! Tesla's philosophy and design are already so Apple-eque. iCar would be a gem, followed by iPlane... the all-electric plane that finally makes travel more affordable by bypassing the oil industry.

 

[Silver Pegasus]

Likely they were sniffing about due to the Metal- Air battery tech that's in the works and any parents they may have on it..

 

[Tankmaze]

What would Apple gain by buying Tesla ? I'm guessing not much.

 

[JerryCards]

iCar! I want to buy one!

 

[KPOM]

What would Apple gain by buying Tesla ? I'm guessing not much.

Technology and patents, but they can get that a lot more cheaply through a licensing arrangement.

 

[dannyyankou]

Something's up it seems like. Don't think we'll see an iCar but it looks like they might collaborate in some form.

 

[musika]

I'd personally prefer to see Tesla make it on their own. They've done so much, and they have the potential to be another Apple-like company on their own.

So many innovative companies are being consumed by the current giants. That's not a bad thing, per say, but I'd just like to see some companies stick it out on their own.

 

[taptic]

Honey, I'll drive.

No. iBought. iDrive.

 

[springsup]

Might cost almost as much as WhatsApp!

 

[Naaaaak]

Their conversation is all about iOS in the car. Any idiots asking about acquisition are "journalists" who don't follow Apple or understand anything.

 

[stellaclose]

Whoa

mmmmmmmmmmmm Liquid Metal iCar.....

 

[kigrsmchugh]

The merger and acquisition guy isn't going to call tesla up about IOS in the car. Has to be battery related.

 

[mozumder]

Apple really needs to try and build out their own network to make sure their long term strategy isn't nullified by Google's network.

 

[icerabbit]

Their conversation is all about iOS in the car. Any idiots asking about acquisition are "journalists" who don't follow Apple or understand anything.

But it all starts with analysts / speculators slipping something under the internet door.

And given Apple's rise to fame now means that every national and local tv station, radio station and newspaper runs with it. Sigh.

 

[thaifood]

the all-electric plane that finally makes travel more affordable by bypassing the oil industry.

Now that is an epic oxymoron!

 

[Ai-apple]

It was about next iRocket

 

[Retired Cat]

Journalists seem to assume that Apple wanted something from Tesla, but what if it's Tesla that wants to buy something from Apple?

Tesla uses ARM processors in its cars. I think that right now they use nVidia Tegra 2 and 3. Maybe they are thinking about using Apple A7 or A8 for future cars since Apple seems to be very good at designing CPUs for low power but high performance products.

 

[69Mustang]

Apple is launching a satellite network for the new and improved Apple TV. Elon's company will get those satellites in space. I mean, when you think about it that idea is just as valid as an iCar. Actually more valid.

 

[seamer]

Sapphire for windscreens (chipproof) and other glass surfaces. Potentially the steering wheel and radio controls, too. Basically if a fingerprint can get on it via regular use -> there's sapphire.

Combined with the rumored curved glass for iWatch, the sapph might actually make an interesting body in strength and weight.