19 Reasons Why Apple Will Buy Tesla For Billions | Exploring Markets

19 Reasons Why Apple Will Buy Tesla For Billions

The venture capitalist Jason Calacanis has a post up. He titles it, Apple will buy Tesla for $75 billion in 18 months. It's a very interesting read and he makes some compelling points. Below we've decided to share his 19 bullet points. What do you think?:

1. Giga factory has been announced, so making the batteries for Model 3 at scale will be a lock, as well. Apple uses a lot of batteries.

2. Apple’s Tim Cook very much wants to pursue the kind of “our-shoring” (I made that word up), that Elon has mastered. In fact, Apple wants to build an all-renewable energy production facility in Mesa, AZ (anyone know the latest on that?), and they are building the Mac Pro (the sexy black mini-cylinder) at their Texas facility.

3. Tim Cook is obsessed with renewable energy, so much so that he told climate deniers to not hold Apple stock, and he is investing $850m to build a giant solar farm to power Apple’s new HQ.

4. Tesla is going to take the 5-inch thick battery from the Model S and plant it on people’s garage walls, according to reports, so that they have enough battery power to last a week. 

5. This means they could charge their batteries by solar (Solarcity! Elon is chairman!) for rainy days, or they would charge their battery at night when there is cheap power and take load off the grid (making electricity even cheaper).

6.. The Model S has a giant iPad in the center console — essentially — but it doesn’t have many Apps (and no App ecosystem). It would be trivial for Apple to power the center console with a retina display, and exceptionally easy for developers to create Tesla dashboard-aware Apps (think: Pandora, Waze, Apple Maps, iTunes, Beats, Spotify, etc).

7. You could charge $50 to $150 per App for the dashboard of a car — people are used to paying a bucketload to upgrade their car hardware.

8. At this rate, Apple could buy Tesla at 3x its market cap (the cost I believe they would need to hit), with a year of profits from their phone business.

9. Apple stores would look really F#@$%ing sexy with a car in the middle of them, no?

10. Self-driving cars will be in the market in 7-10 years in a major way (you’ll test one in the next three years, of course), which means that with Apple and Tesla’s combined progress in this market, they could have the entire line refreshed and ready for a makeover for the coming driverless revolution.

11. No other car company can catch up with Tesla — it’s already game over.
Google is another likely buyer, but Google can’t compete with Apple’s war chest.

12. No one else in the world could actually make a run at Tesla, because they either don’t have the cash and, most importantly, they don’t have the ability to give assurances to Elon that they won’t f@#$ it up. Apple’s design team, software, and global distribution would actually LEVEL Tesla up.

13. Google’s design and global distribution (for products) just sucks, and they are all over the place. I can’t see Google buying Tesla and making it that much better. Sure, they have some data and some technology, but it feels like that isn’t as important for Tesla right now.

14. When cars become driverless you will have every passenger sitting there with nothing to do in front of a piece of glass that is massively larger than any screen Apple currently makes — and for hundreds of hours per year. Can you imagine the number of Apps that will be downloaded when we’re all sitting in our cars, with no need to drive?!?! App store revenue gone wild!

15. Apple would need at least seven years to get a car on the road: three or four years to design it, followed by three to five years of building factories capable of any sort of modest capacity.

16. Elon Musk as the CEO of Apple? Wow. Doubt he would want to do it, but I could see him being the Chairman — and that would be kind of special.

17. Reports are 100+ Apple former employees are working for Tesla.

18. Tesla’s Model S is considered the greatest car ever made — something Apple can relate to (having had Walt Mossberg anoint them the greatest phone, tablet, and laptop ever made).

19. Perhaps we will hear a spring surprise: Apple is a partner in Tesla’s Giga factory?