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Old 20th February 2014, 10:21   #1
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Default Apple & Tesla: What's cooking?

I have been pondering on what would be the next move for Apple. They always have been acquiring small companies which provided smarter solutions. But now, they tried to buy TESLA. But the deal didn't happen.

For those who are not aware of Tesla, you may run through this.
http://www.team-bhp.com/forum/test-d...pressions.html (Tesla Model S: First Impressions)

There had been many rumors stating that, Apple is trying to bring its solutions to cars. Apple had discussions with BMW and some other luxury car makers. But there hasn't been any offering from Apple to these brands.

Tesla's CEO states that, acquisition is quite unlikely. Quoting what he said.
Quote:
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."
http://www.macrumors.com/2014/02/19/...tion-unlikely/

Now it is very clear that, Apple is ready & eager to enter Automotive sector. Targeted companies are those which make "Green products" so called Electric cars.
Apple has in excess of 100 billion in cash (Close to ~150 Billion prior stock buyback). They can buy almost any company.
They are considered as pioneers in making Quality products.
With the kind of Goodwill, technology Prowess apple has in technology, i think its a wise choice for apple to enter new sectors.

But Why only Tesla? Why not any other brand which makes electric cars ?

Last edited by gemi_kk : 20th February 2014 at 10:26.
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Old 20th February 2014, 10:34   #2
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Default re: Apple & Tesla: What's cooking?

Tesla is right fit for Apple. But Tesla's philosophy is different from Apple. Anyway I recall GM's reply to Bill Gates, many years ago:
Quote:
Macintosh would make a car that was powered by the sun, was reliable, five times as fast and twice as easy to drive - but would only run on five percent of the roads.
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Old 20th February 2014, 13:34   #3
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Default Re: Apple & Tesla: What's cooking?

"Defending Turf" Could be one motivation.

Tesla runs a customized build of Linux at the moment for ICE + some car management functions.

Tesla has announced that they are porting Dalvik to this Linux environment. This would enable end users to run some of Android apps in Tesla cars (E.g. Yelp/Spotify/Pandora).

Apple might want to push OSX / iOS in this space.
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Old 20th February 2014, 14:10   #4
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Default Re: Apple & Tesla: What's cooking?

The way I see it at this situation with enterprise and consumer mobility background is continuous innovation to keep your market leadership position in tact. Apple has been hugely successful after they brought iPod and iPhones in he market. That seems to be slowly saturating with Android and Windows Phone competition heating up. If they just continue to do what they are doing, in another 3-5 years they will be just another phone company whereas companies like google will continue to lead the markets.

This brings to the only point to look at the initiatives and markets that help build on their existing expertise and expand into uncharted territory. Automotive being one, wearable technologies for healthcare is next huge thing. Wearables are already making news and are being used for various things - consider google glass, rumored iWatch or samsung gear and what not!

And talking about tesla, future sure is electrifying!

Another though process for the phones/ OS and automotive is that you cant make people completely not use their phones while driving. So why not make things that will let them use phones but in a different way than it becomes reason for harm? I understand that it cannot be done completely, but then do as much as possible. So that is why these native integrations of the phone displays into infotainment systems or heads up displays and so on are catching up fast.

I think when we look back and try to connect the dots, the things makes sense but looking into future is always curiosity and speculations! Mobility and automotive being the most fascinating topic, I personally and very eagerly looking forward to this!
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Old 20th February 2014, 14:20   #5
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Default Re: Apple & Tesla: What's cooking?

Buying out a hallowed niche car manufacturer to embed your OS for running its ICE + car management functions is an expensive way to achieve the stated end goal!

I think there would be a bigger vision to it!

How many other manufacturers have reached the level of quality, safety,ecosystem (superchargers across US) and brand value that TESLA has reached?
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Old 20th February 2014, 14:28   #6
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Default Re: Apple & Tesla: What's cooking?

I don't think Apple at any point of time would be interested in doing anything remotely connected to automobiles, unless it's to do with the Car OS. But then it doesn't warrant the acquisition guys to meet.

Apple has been investing a lot in to battery storage, especially with the iwatch rumour. They might be looking to buy/source some of the new developments in battery tech, that Tesla has or is in the process of mass production.
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Old 20th February 2014, 15:08   #7
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Default Re: Apple & Tesla: What's cooking?

It should be good for the consumer in terms of technology, but I am not too sure about the costs in the long term.
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Old 20th February 2014, 15:18   #8
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Default Re: Apple & Tesla: What's cooking?

More details about Tesla...

Quote:
Musk claimed that Tesla would lead the way in nascent autonomous car technology, and also admitted to meeting with Apple about… something.
http://www.forbes.com/sites/ericmack...apple-meeting/
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Old 20th February 2014, 15:32   #9
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Default Re: Apple & Tesla: What's cooking?

Even if Apple acquires a car company or even gets contract for the ICE / mulitmedia systems, they would definetly charge a premium for that.

Their main competitor, the Android OS, does NOT charge a premium. Just the ICE part would/could price a car much beyond the competition. As an end user, would someone prefer an iOS based entertainment device or prefer any HU + speaker combo + iphone/ipad. Probably they might come up with a detachable HU that doubles up as a tablet or phone. This servers dual purpose of security (removing front plate) and also denies the need to carry another phone/device

i am certainly in the HU + speaker + iOS combo guy (my wife uses iPhone 5S iOS 7.0.4).

Last edited by scopriobharath : 20th February 2014 at 15:50.
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Old 20th February 2014, 18:01   #10
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Default Re: Apple & Tesla: What's cooking?

Well, it seems Apple is interested in the "Gigafactory" that Tesla is planning to build.

Quoting from the company's latest earnings call

Quote:
Very shortly, we will be ready to share more information about the Tesla Gigafactory. This will allow us to achieve a major reduction in the cost of our battery packs and accelerate the pace of battery innovation. Working in partnership with our suppliers, we plan to integrate precursor material, cell, module and pack production into one facility. With this facility, we feel highly confident of being able to create a compelling and affordable electric car in approximately three years. This will also allow us to address the solar power industry’s need for a massive volume of stationary battery packs.
This factory would have the equivalent of all of the world’s current production of lithium ion batteries in one factory. This is where Apple might pitch in. Quoting from http://9to5mac.com/2014/02/16/apple-...y-gigafactory/

Quote:
Apple obviously has a huge interest here, as it uses the batteries in all of its products. Musk has announced that there will be several high-profile partners in the green US plant, likely including Panasonic and possibly Solar City. Apple has been investing in big green US factories recently, including its Mesa AZ Sapphire venture.
And as for selling his company, he has quashed such rumors long back in his tweet.

Quote:
“Forgot to say one thing at Tesla annual shareholders meeting: just as my money was the first in, it will be the last out.—
Elon Musk (@elonmusk) June 05, 2013
Another interesting article here http://gigaom.com/2014/02/19/tesla-c...ars-this-year/
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Old 21st February 2014, 04:46   #11
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Default Re: Apple & Tesla: What's cooking?

Interesting way the topic has turned. Let me throw some news into the mix.

Apple bought a First Solar plant in AZ in 2013. Tesla did look at AZ as one of the locations for their factory.

These two could collaborate.

As compared to Apple buying Tesla so that their ipad is in the dash board

Interesting year it would be infact.

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Old 21st February 2014, 10:26   #12
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Default Re: Apple & Tesla: What's cooking?

Quote:
Originally Posted by Mudhalaipatti View Post
Apple has been investing a lot in to battery storage, especially with the iwatch rumour. They might be looking to buy/source some of the new developments in battery tech, that Tesla has or is in the process of mass production.
Boy, Apple Is miles ahead in technology when it comes to making decent batteries, efficient and effective battery Utilization/Charging levels. Apple products run comparatively more than its competitors. Even their life is great over a span of years. I Agree that this point cannot be an advantage when we compare it with Tesla's.

What Tesla has is ~12000 to 15000 independent cell batteries connected together as a mesh. Their charging mechanism is different and it gave good results. No other manufacturer was able to attain this. And the design was great. They made the product reliable.

The reasons which i think apple considered prior their talks are
- Tesla could give a good start for Apple in Automobiles. Take it. Run it for some time. Then release a new model every year with consistent improvements.
- Tesla has an equivalent Good will like Apple has.
- Tesla has expertise in the whole product. Where as apple has a sound expertise in software, electronics and Batteries. And Tesla's product has only these.
- Apple is very good at learning.
- Apple's sound knowledge on Optimizing battery utilization levels could be implemented in Tesla's.
- Using Solar Power? Apple has some patents here too.
- Apple is great when it comes to significant Weight reduction without compromising on quality.
- They have better exposure to Metallurgy.
- And last but not the least, they Hire the best and they deliver the best. Like Tesla.

In short, Apple has a good exposure in all areas of a Tesla Car. Battery, Motor, Metallurgy, Design. So. Why not buy Tesla?

Last edited by gemi_kk : 21st February 2014 at 10:35.
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Old 21st February 2014, 12:04   #13
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Exclamation Re: Apple & Tesla: What's cooking?

Something that can be co-related. Please watch the video.



Cheers!

Vinu
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Old 21st February 2014, 20:32   #14
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Default Re: Apple & Tesla: What's cooking?

Tesla CEO Confirms Apple Meeting, but Deal Is “Very Unlikely"

Quote:
Elon Musk has confirmed the recent rumor that claimed Tesla Motors had a meeting with Apple last year, but said it is “very unlikely” that the Palo Alto-manufacturer will be bought by any company.

http://www.autoevolution.com/news/te...ely-77332.html
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Old 25th February 2014, 23:16   #15
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Default Re: Apple & Tesla: What's cooking?

Speaking of Tesla, I was in San Francisco a few months ago and spotted these two Teslas. Enjoy!
Attached Thumbnails
Apple & Tesla: What's cooking?-tesla-001.jpg  

Apple & Tesla: What's cooking?-tesla-002.jpg  

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