Apple Brings Back Interest To Buy Tesla, Could They Succeed This Time?
With the current financial position of Tesla, the talk of Apple's interest in buying the Auto company had resurfaced. Apple has tried to buy Tesla back in 2013 for $240 a share, an amount more than the worth of Tesla's share today. So could Apple really by Tesla? The last word may be from Elon Musk, who appears to hardly want to sell his company.
In 2013, there was a very serious offer from Apple to buy Tesla for $240 a share. At the time, sources said that negotiations were made after a meeting with Elon Musk, Tim Cook - CEO of Apple and Adrian Perica - Chief Executive for acquisitions and mergers in Apple happened. It is not known if this negotiation turns into a paper agreement, but it's clear that Apple failed to buy Tesla that time.
Today, despite the good moment and continuous popularity Tesla is receiving, the company has had better times. Tesla is not in its best financial moment, even going bankrupt several times. With the departure of the Tesla Model 3 the company survived, but its stability is still in doubt. Hence the reason why Tesla's value fell more than 38% this 2019 with its stock now costing only $197.76 last Tuesday morning.
Apple on the other hand has a large amount of income, and according to financial advisors, the money saved does not make sense if it is not used. The currency changes and can be devalued, so Apple needs to invest. Apple should not become dependent on the iPhone and iPad, seeking other ways to earn revenue by acquiring companies in other niches such as Netflix or Tesla.
This is why, if Apple had the interest of a Tesla buyout before, it probably still holds that interest, even more with them needing to invest and with Tesla's stocks at a lower price,
A purchase by Apple would greatly benefit the two sides. For starters, Apple would finally advance in the project of its autonomous car. It is known that the Titan project remains active as warehouses are being built in California ideal for manufacturing lithium-ion batteries for electric cars. Apple is also developing its own LiDAR sensors, the most important part of autonomous car and Tesla is one of the most advanced companies in this sector which could hugely help the project.
Elon Musk, will also win in this agreement. It would prevent his bankruptcy and under Apple's control,iTesla could continue to have its projects and developments for a long time. Depending on the level of control of Apple, Tesla could continue to make new models and do more projects. In addition, he could use the money from the sale to boost his other companies, such as SpaceX.
If the two companies will combine, this would be the largest acquisition ever made by Apple, in addition to being one of the largest transactions in the history of the technology industry. The company's most expensive investment so far has been the acquisition of Beats Electronics in 2014 for $ 3 billion.