Such speculation between a tech giant and a start-up company that is doing very well is usually common news, but when it comes to America’s auto wonder, Tesla, all must be treated seriously.
The San Francisco Chronicle reports that Apple wanted to go out of its comfort zone as much as venturing into the automotive business, in an unconventional attempt to mirror Google’s foray into autonomous driving. And, because nothing should be done unspectacular in the good Apple tradition, they talked to Tesla’s CEO Elon Musk.
The newspaper reports that these discussions are old now, as billionaire entrepreneur Musk met with Apple’s mergers and acquisitions chief back in spring of 2013.
Apple could be searching now for “the next big thing,” suggested Bill Kreher, an analyst with Edward Jones Investment in St. Louis, in a conversation with the Chronicle. “Apple must increasingly rely on new products to reignite growth beyond the vision” of founder Jobs.
The undisclosed sources that talked to The Chronicle said that Adrian Perica, Apple’s M&A chief and Tesla’s Musk met in Cupertino – hometown of Apple – last spring. That was exactly around the same time some analysts said the electronics giant would do well in buying the electric automaker.
However, the acquisition soon was impossible, as Tesla’s stock started to grow to an astounding rate after it posted its first good results with Model S sales, from a low point of $33 a share (with a company value of around $4 billion) to almost $200. Now, after the fire risk seems to have wined down and thanks to good quarter results, the stock surpassed the $200 mark, valuing the battery-car maker at around $25 billion.