Hold onto your hats, this could be happening!
Elon Musk’s all-singing, all-dancing electric car company might be up for grabs. That in itself is exciting news but there’s more.
According to recent rumours on the matter, the executives over at Apple could be interested in coughing up the cash and getting in on the action.
Tesla Could Be a Prime Target for Apple
Yes, it’s long been known that the powers at Apple are looking for a way to expand outside the iPhone market.
So, since Tesla has been valued at a mere $52.5 billion (Apple stands at $823.7 billion as of 26 Feb 2019), experts believe that the company could be a prime target for Apple.
In an interview with CNBC, Freddie Lait, chief investment officer at Latitude Investment Management, recently speculated that there was every reason for Musk’s company to get bought out.
“It’s quite possibly going to get bought out for that valuation because it represents what that is,” Lait told CNBC last week. “It’s already got its own operating system, it’s got its own technology, it’s got a great brand.” To put things lightly, it means that it’s a safe buy.
The Cash-Flow Conundrum
Plus, it’s no great secret that Tesla needs a cash injection right now.
Last year, Musk tweeted that he was considering making the company private at $420 per share. He said that shareholder could either sell at that price or take the opportunity to hold onto the shares and go private with the business.
There are also rumours that he has been approached by multiple investors about the possibility of a deal.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
So, what does that have to do with Apple? Well, it hardly takes a genius to figure out that the company is pretty darn flush. With a whopping $237.1 billion in the bank, the business is hardly struggling.
What’s more, the time could be right for the powers behind the company to branch out and start investing in new, upcoming tech. There have been whispers of this move for quite some time. What better than the futuristic, forward-thinking Tesla brand?
The Perfect Techy Fit
And now, for the killer question: How do the two companies fit together? Quite well, actually.
It’s well-known that Tesla wants to push forward and bring autonomous cars to the mass market soon enough. That’s something that will most definitely pique Apple’s interest, especially since the company has been working on a competitor called ‘Titan’. Since that project seems rather slow, it could be that the people at Apple want a quick solution to their car-related plans. Interesting stuff. Watch this space.