Tesla Says Sale To Apple Unlikely - But With Apple Sitting On $137 BILLION In Cash How Long Can They Wait?

Tesla Motors CEO Elon Musk has confirmed that he had a meeting with Apple, but didn’t reveal what the discussions were about. However, the entrepreneur said a Tesla sale is “very unlikely” at the moment because the company wants to go through with its mission to build a mass-market electric vehicle.

“We had conversations with Apple. I can’t comment on whether those revolved around any kind of acquisition,” Elon Musk told Bloomberg TV in an interview. “I’d be very concerned in any acquisition scenario, whoever it is, that we become distracted from that task which has always been the driving goal of Tesla,” Musk added, referring to the company’s goal of building a compelling mass-market EV.

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MattDarringer - 2/20/2014 7:46:20 PM

+1 Boost

Tesla is a case of Emperor's new clothes. It's 100% hype. Apple buying into Ford would make better sense.

zairnaim - 2/20/2014 9:36:11 PM

+2 Boost

Just wondering why you think that Tesla is all hype? I understand the stock price is completely irrational but what else is hype?

quizz - 2/21/2014 1:44:01 PM

+1 Boost

The HYPE is that Tesla's business model is sustainable. Much of its revenues come from state/federal incentives. Also, it targets a VERY niche market, namely:
1. Premium buyers
2. Who don't care about the inconvenience of charging
3. Who has a 2nd car for "everything else"

This is a small market, with limited growth potential. The trend for electric cars is declining among mainstream buyers. Tesla's continued growth requires expansion into the Prius/Fusion market, but without economies of scale, Tesla is going to have a hard time competing in price.

Tesla is interesting, but the course it is on is NOT sustainable. There are only so many people who will buy a Hermes bag, but they replace their bags every 3 months. Tesla won't be able to convince the premium buyers to replace their cars every year.

quizz - 2/21/2014 1:44:30 PM

+1 Boost

meant to say "not sustainable"

TheSteve - 2/21/2014 1:47:15 AM

+1 Boost

Talk about wild, groundless speculation! Wow!

MattDarringer - 2/21/2014 9:00:39 AM

+2 Boost

@zairnaim The stock price is based on the PERCEPTION that Tesla is as competent as say Mercedes and that they have done something game changing. Neither is true. Tesla's previous cars were just "take a Lotus and bolt batteries in" engineering. Musk is running around promising technology for instantaneous recharging (that does not exist even remotely) and an infrastructure of Tesla charging stations (when no plans exist for such a massive investment). Elon Musk is NOT in Tesla for the long run. Tesla is all about creating a sensation, inflating the stock price, and then selling it before anyone catches on. The Tesla S is no more advanced than a Nissan Leaf, and the Volt/ELR is actually a better engineering job.

TheSteve - 2/21/2014 5:10:00 PM

+1 Boost

Spot on! :-) I take it you don't have any shares in Tesla ;-)

For the record, when Top Gear gave Musk's car a bad review, he accused them of writing the review before the car even arrived for them. I have no idea how he could ever prove that assertion. He used that same assertion when another auto magazine gave his car another unfavorable review. Elon Musk: Spin Doctor.

xjug1987a - 2/21/2014 11:49:20 AM

+2 Boost

MattDarringer shoots.... HE SCORES!!!!

Holydude - 2/22/2014 1:38:39 PM

+1 Boost

We'll see if he's all hype or the real deal, but a meeting with Apple certainly gives more credibility to becoming the real deal.