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Apple shareholders suggest Tim Cook to buy Tesla Motors, the CEO refuses


At Apple Inc.’s (NASDAQ:AAPL) annual shareholders meeting held on March 10, 2015, investors had raised a peculiar suggestion to Apple’s CEO Tim Cook. The investors had suggested that Apple consider acquiring Tesla, after the recent smart watch releases.apple-building-night

However, Tim Cook handled the suggestions in a very diplomatic manner by dodging the question. Tim Cook suggested that he would be delighted if Apple’s CarPlay was picked up by Tesla for its cars. Tim Cook also denied any existing interactions or engagements with Tesla’s founder and CEO, Elon Musk.

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Tim Cook observed that CarPlay was now being utilized by every other major car brand for embellishing their car dashboards and he would expect Tesla to do the same as well. The chances of that happening, however, may actually be very less as Tesla has its own very advanced dashboard model that can compete effectively with Apple’s offering.

Although some quarters have suggested that Apple’s desire to see usage of CarPlay by all car makers across the board may eventually lead to the acquisition of a reticent Tesla that may be obstinately avoiding incorporating Apple’s CarPlay. Thus, even if toyed as a future possibility, is effectively debunked when one considers the poor state of Tesla’s stock.

Tesla’s share price had peaked for the last time in the month of September last year and had touched a figure of $280 a pop. However, since then, the stock has shed almost a third of its value and is hovering around $190 only. This is also being pressed into the argument as a compelling fact for Apple to make its purchase as the stock price is available for cheap. Yet, this lower price must be looked into in the backdrop of past performance indicators.

Revenue growth has been drastically affected over the last 12 quarters for Tesla, which has directly resulted in the negative growth seen in its share price since March 2013. Sensing the possibility of loss of value in their shareholdings, common shareholders of both Tesla and Apple may chiefly be behind this suggestion to Tim Cook.

Regardless of specific concerns or considerations, Apple Inc. is well positioned to purchase Tesla Motors as it is sitting on a neat pile of $180 billion and Apple has been in an acquiring frenzy over the past year and a quarter during which it acquired 23 companies. Moreover, the case for the acquisition of Tesla is even stronger when one considers the fact that both companies are nearly equal in their philosophy of developing cult-like disruptive products that shake up entire industries.


About suzanne

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Suzanne loves to cover all aspects of Technology, Online Shopping & Gadgets. She is an Ebay & Amazon seller, who provides valuable information for the successful entrepreneurship. She has also worked for the Online Media such as PC-Tablet.com and many print media - Tech Magazines in France & US.

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