This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Apple Would Be Nuts to Buy Tesla, However ...

NEW YORK (TheStreet) -- For some reason, this Apple (AAPL - Get Report) news continues to fly under the radar:

Maybe it's not news. But it should be.

I'm not all fired up about Apple turning us into a bunch of hypochondriacs with a wearable device that'll do stuff like tell you when you're about to have a heart attack. Frankly, I think it's a big mistake to play into the hands of a health anxious society that Googles every little ache and pain.

But I digress and offer an area where I reckon Apple still has plenty of room to innovate. In the auto. On the dashboard.

And that doesn't mean I think Apple should buy Tesla Motors (TSLA - Get Report). The moment Apple starts buying other companies because they're cool is the day I lose all faith in Timothy D. Cook's ability to lead in Steve Jobs's wake.

Certainly, Tesla owners have an affinity for Apple products. And vice versa. There's no question Elon Musk could be well on his way to saturating our fleet with electric vehicles the way Toyota (TM) did with the Prius hybrid. But that's not a risk Apple should be taking on. It's so far out of the company's wheelhouse that it's ...

... it's ...

... it's ...

Something custom made for CNBC and the rest of the financial media (and even CNN) to harp on incessantly. Even though these apparent "talks" between Apple and Tesla happened, in tech time, ages ago.

Plus, remember, Everybody Talks. There's more than pesky semantic differences between "talking" and being "in talks" as I explain at the link in the last sentence with respect to old Apple/HBO rumors.

Plus, Apple operates in an environment where the same ding dongs who push the Tesla M&A talk like heroin scrutinize its margins.

1 of 2

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 $128.46 0.00%
GM $37.31 0.00%
TSLA $203.34 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

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