This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Would Apple Acquire Tesla?

When I asked those smartphone bears in 2000 and 2001 if they actually had a BlackBerry, most of them said "No, why would I want to look at my email all the time?" They had never used one. Three years later, every single smartphone skeptic I knew had one.

Fast forward to today. All you needed to do in order to know that the Tesla Model S was going to be an awesome car is to have driven any of the other good electric cars already in the market: Nissan LEAF, Chevrolet Volt, Fisker Karma, BMW 1-series Electric or Ford (F - Get Report) Focus Electric.

Yes, I know those are not all the same -- and certainly they are different from the Tesla Model S -- but they are all basically very impressive to drive. Most of them cost materially less than the Tesla. If you just extrapolate a little, you would easily arrive at the conclusion that the probability of the Tesla being great to drive, would be extremely high.

Depending on the configuration, the Tesla's got around 400 silent, torque-drenched horses, for pete's sake! And a 17-inch monitor that makes Apple look like an ancient Luddite backwater company! And you thought people taking a first test drive in the Tesla wouldn't be impressed?

But the Tesla bears didn't do their homework. If they had just spent some time behind the wheel of a Chevrolet Volt, for example, they would not likely have dared being short Tesla. At 93% customer satisfaction, the Volt received the highest rating by Consumer Reports. Double the price and the Tesla wouldn't somehow make for an impressive test drive? C'mon!

There are several reasons Tesla is a guaranteed success, absent an entirely possible out-of-left-field snafu. Steve Jobs once said that on an Apple computer screen, the icons needed to be finger-licking good. That pretty much describes the Tesla Model S control panel.

Apple

Which brings us to Apple.

Ask yourself the question: What value would Apple bring to the TV market, actually making television sets? Giants such as Samsung and Vizio dominate the TV market today, selling outstanding panels at razor-thin margins.

You can get your Apple experience on the TV by spending $99 on the Apple TV box, simply plugging it into any relatively modern TV. The TV might cost $700. Apple would surely charge at least $1,200 for its own equivalent integrated Apple TV. Now, do you want to spend $799 or $1,200 for that Apple TV experience?

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $127.60 0.00%
F $15.91 0.00%
GM $37.11 0.00%
TSLA $205.27 0.00%
FB $83.09 0.00%

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs