This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Would Apple Acquire Tesla?

Stocks in this article: TSLA AAPL GM F

Perhaps Apple has some truly innovative aspect to the TV business that the current -- or a future -- separate $99 Apple TV box can't somehow accomplish. Some of these arguments were also speaking against Apple entering the smartphone business in 2007, so you can't be sure.

TVs require fortunes of working capital, as well as store shelf space. They are costly to deliver and install as necessary. Why would Apple go through that sort of pain, when a box and an HDMI cord can give the user seemingly all the benefits anyway?

Ready Made

Now, contrast the pain and low margins of the TV set business with Apple acquiring Tesla. What are the ways Apple could add value to the car, that is difficult to do in an arms-length scenario? I don't have the space to go through them all in detail in this article, but consider the following bullet points:

  • Maps and traffic data
  • Self-driving cars, (hey, Google!)
  • iCould-based entertainment
  • Location-based information
  • Camera technology
  • Speech control
  • Yes, some of these advancements will surely continue to happen even in an arms-length scenario, but does this look any less logical than the TV business?

    Consider these signs and arguments for Apple acquiring Tesla instead:

  • Apple and Tesla are located almost next door to each other
  • Tesla is opening stores in mostly the same locations as Apple
  • Tesla is already copying Apple's sales and service model
  • Tesla's head of sales and ownership experience, George Blankenship, was Apple's head of real estate
  • Tesla already took Apple's screen/icon look and made it even better
  • Working capital to fund a TV business could easily exceed acquiring all of Tesla
  • Smartphones, tablets and cars are all products of profound personal statement. Everyone knows what they have, and why. They are all lifestyle statements. Television sets? Not so much.

    If you are in the market for an $80,000 car today -- and which engineer at Facebook or Apple today isn't? -- the Tesla Model S is a lot more appealing than some Mercedes S-class or BMW 750.

    And if you are Apple, with $100 billion burning in the bank, shelling out for a $4 billion market-cap company of iconic importance to the future of technology sure sounds a lot more appealing than stamping out low-margin television sets.

    This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

    3 of 3

    Select the service that is right for you!

    Action Alerts PLUS
    Try it NOW

    Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    • Weekly roundups
    TheStreet Quant Ratings
    Try it NOW
    Only $49.95/yr

    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
    • Upgrade/downgrade alerts
    Stocks Under $10
    Try it NOW

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

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    • Weekly roundups
    Dividend Stock Advisor
    Try it NOW

    Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

    Product Features:
    • Diversified model portfolio of dividend stocks
    • Alerts when market news affect the portfolio
    • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
    Real Money Pro
    Try it NOW

    All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

    Product Features:
    • Real Money + Doug Kass Plus 15 more Wall Street Pros
    • Intraday commentary & news
    • Ultra-actionable trading ideas
    Options Profits
    Try it NOW

    Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

    Product Features:
    • 100+ monthly options trading ideas
    • Actionable options commentary & news
    • Real-time trading community
    • Options TV
    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!


    DOW 17,912.49 +107.69 0.60%
    S&P 500 2,075.12 +4.47 0.22%
    NASDAQ 4,776.9260 +11.5460 0.24%

    Brokerage Partners

    Rates from

    • Mortgage
    • Credit Cards
    • Auto

    Free Newsletters from TheStreet

    My Subscriptions:

    After the Bell

    Before the Bell

    Booyah! Newsletter

    Midday Bell

    TheStreet Top 10 Stories

    Winners & Losers

    Register for Newsletters
    Top Rated Stocks Top Rated Funds Top Rated ETFs