Details Surface Of Secret Meeting Between Apple And Tesla - Could An iCar Be In The Works?

Apple may have been kicking the tires on Tesla, according to an article in the San Francisco Chronicle, which reported that the company's chief of mergers and acquisitions met with Tesla CEO Elon Musk last year.

Adrian Perica met with Musk and "probably" Apple CEO Tim Cook at Apple's Cupertino headquarters last spring, according to the report, which cited a source whose identity was concealed to protect business relationships.

"While a megadeal has yet to emerge (for all of its cash, Apple still plays hardball on valuation), such a high-level meeting between the two Silicon Valley giants involving their top deal makers suggests Apple was very much interested in buying the electric car pioneer," the report said.

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MattDarringer - 2/17/2014 3:46:17 PM

+1 Boost

Tesla is a confidence scheme and Apple is falling for it. Musk is probably wetting himself with laughter.

ParadoX - 2/17/2014 8:28:29 PM

0 Boost

I think most likely it was to discuss integrating certain Apple technologies into Tesla models for info-tainment systems.

Apple Designs electronic devices it can sell for high margins. Most likely it is interested in having its technology put into a car, and Tesla probably wants something like an Ipad on the dashboard.

But lets not pretend that Apple is considering purchasing a car manufacturer. Cars are a low margin business, Apple wouldn't get into it for that reason alone, never mind the other more glaring problems of owning a car company.

Coke isn't going to buy McDonalds so it can guarantee that the restaurant sells its product, and Apple is not going to buy Tesla just so it can put a modified Ipad on the dashboard.

My guess is they will reach some sort of arrangement where Apple will design an info-tainment system, and Tesla will buy it. Apple will take lower margins than it is used to on its products because it wants to be associated with another futuristic high end brand.