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Back in Tesla Model 3 days Elon wanted to sell Tesla to Apple but Cook didn't even care
- Thread starter paypay88
- Start date
Would've been a terrible acquisition for Apple so Cook made the right decision. Tesla has really only managed to stay in business by leveraging their massive market cap to raise capital via equity, it's not like the company actually makes any money. If I was a Apple shareholder I'd be pissed if Cook poured Apple's massive cash reserves away on keeping Tesla afloat.
Dural
Member
Didn't Tesla post it's first annual profit last year? Haven't they posted profits in every quarter so far this year? If Apple truly is going to release a car, purchasing Tesla at their low point wouldn't have been a bad decision with the infrastructure and technology Tesla has. It will take years for Apple to catch up, if they even can.
IntentionalPun
Ask me about my wife's perfect butthole
They are losing money on their operations, and have even had car sales be down YOY some quarters, and selling billions in "regulatory credits." There's these weird laws that allow companies who would get fined for not meeting regulatory compliance to pay companies who are doing "better than the regulations" for their "excess credits." So Tesla would be losing hundreds of millions of dollars if not for these credits.. which luckily for them, they have some deals all the way through 2021 to keep selling them.
This is a short term solution to losing money. Tesla's sales are down despite trying to expand, because in the US they lost their eligibility for the $7500 EV tax credit near the end of 2019 (they've sold too many EVs to be eligible.)
Despite the stock price and production numbers being up, it's not all rosey for Tesla.
And there is a reason Tesla was worth 1/10th what it was today during their lowest low, because there were lots of signs of their demise.
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diffusionx
Gold Member
I am sick of Tim Cook the SJW but Tim Cook the CEO has Apple on the right path, they have scaled up to an unbelievable degree (consider the ease with which they launched major updates to all of their product lines this quarter while Sony struggled to ship out a few million PS5s), their tech and engineering is still top notch, etc.
Apple buying Tesla, eh, I guess the "dark days" of the Model 3 would be 2017-2018, I can see why Apple wouldn't want to take that company into the fold. yes they're scaling up for a car now but that's the point, they're doing it their own way, which, if you've paid any attention to Apple the past 15 years, is how Apple likes to do it.
If true Apple feels like they can catch up, and they don't need the Tesla brand name. Considering their cash reserves and the level at which they operate these days, I get it.
Apple buying Tesla, eh, I guess the "dark days" of the Model 3 would be 2017-2018, I can see why Apple wouldn't want to take that company into the fold. yes they're scaling up for a car now but that's the point, they're doing it their own way, which, if you've paid any attention to Apple the past 15 years, is how Apple likes to do it.
If true Apple feels like they can catch up, and they don't need the Tesla brand name. Considering their cash reserves and the level at which they operate these days, I get it.
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Dural
Member
It’s not the name they’d want , it’s the infrastructure and technology. Tesla found out the hard way just how difficult it is to take a car from concept to production. It doesn’t matter how much money you have, when you have no experience and no infrastructure it takes years to get it right. I don’t see Apple putting a car out until the late 2020s at the earliest if they’re actually doing this on their own. If they buy or collaborate with a car manufacturer then maybe it could be earlier, but even then they could run into issues.
diffusionx
Gold Member
Well that's the thing - Musk references the dark days of Model 3, and I remember that time, when there were real questions about Tesla's infrastructure and technology.
There are collaborating with car manufacturers (based on MR articles), it is ultimately going to be a huge bet when they have to commit to placing hundreds of thousands of orders, but it seems like they have been chugging along for years working on this at their own pace, whereas if they bought Tesla, well they own it now.
jadedm17
Member
Tesla isnt profitable because theyre putting everything back into building factories, battery research and more; Tesla could be profitable if it wanted but is focused on extreme growth.
Dr.Guru of Peru
played the long game
If* is the key word. Its only a rumour at this point, and I don't know if taking on a money losing venture at the time like Tesla sans its biggest asset (Elon Musk) would have been a good investment for a company that isn't even sure it wants to enter the automotive industry.
Ok. Their financial reports tell a different story of flat/slowing R&D and assets depreciating faster than CapEx though.
EverythingsOverrated
Member
Very glad that Apple didn't pull the trigger. They've become a very boring company in terms of innovation so I could only imagine what would've happened.
No way we get the cyber truck with Apple pulling the strings lol
No way we get the cyber truck with Apple pulling the strings lol
Buying Tesla would be a risk even today. Tesla cars have lot of issues, electric cars are too expensive so the market have struggle to raise, and Tesla is not seen by customers as a premium car manufacturer despite its prices. Automotive market is very hard and revenue are low, especially on the cheap cars, only premium cars are profitable, and Tesla is not a premium car manufacturer.
Gigafactory or Space X are way more appealing.
Gigafactory or Space X are way more appealing.
Frito_Pendejo
Member
lmfao
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