Here’s Why Apple Will Never Purchase Tesla

As the most valuable company in the world, there’s always plenty of speculation as to what Apple will do with all of that money. One of the company’s favorite past-times, of course, is buying out other companies. Software companies, satellite communication companies, internet service providers, music streaming services, headphone companies – you name it, Apple has bought it.

It’s likely due to this penchant for buying out other companies with desirable and/or competitive technology that has led to the re-occurring rumor that Apple is buying famed electronic automobile company Tesla Motors. Rumors of a Tesla buyout date as far back as early 2014, around the same time the first inklings of Apple’s “Project Titan” began to hit the internet. Bloomberg reported in February of 2014 that Tesla CEO Elon Musk had been quoted as saying that he “had conversations with Apple,” following with “I can’t comment on whether those revolved around an acquisition.” Rumors surrounding the purchase have heated up and cooled down again, often coinciding with new news concerning Apple’s electric car project. Apple has, in fact, hired a number of Tesla employees to work on their project, leading many pundits to accuse Apple of “poaching” Tesla’s employees. More recently, Tesla hired Apple’s Director of Reliability Engineering, reportedly to address the fact that Consumer Reports claims that Tesla’s Model S has “worse than average” reliability issues.

The fact of the matter is: the rumors of Apple buying Tesla are just those – rumors. While it wouldn’t be out of the question for the two companies to work together, a buyout is simply unlikely. Perhaps Apple may partner with Tesla for an autonomous car project – it was reported in July that Apple may have shifted Project Titan’s focus to the development of an autonomous driving system, leaving the option open to “partner with or acquire an established car maker, rather than building a car itself” (there’s that word again – acquire). However, although Apple has a long history of acquiring smaller companies, they have never purchased a company of Tesla’s size. Also worth mentioning is the fact that Tim Cook simply wouldn’t work as the CEO of Tesla, and Musk wouldn’t be able to replace Cook as Apple’s CEO. A company such as Tesla needs a radical visionary like Musk, and his personality, lofty goals, and previous work with Tesla and SpaceX suggest that Musk wouldn’t thrive working under someone else. On the other hand, Cook has thrived by playing it a bit safe and maximizing value for the products that Apple produces – Cook just isn’t the mad scientist that fits into the Tesla model.

The future for both companies will certainly be interesting to watch, but if you’re waiting for Apple to purchase Tesla Motors, don’t hold your breath. It wouldn’t be surprising, however, to see Apple invest a large amount of money into Tesla, or, at most, strike a partnership with them. The latter could certainly produce some mind-blowing technology. Only time will tell.

Do you think a merger would be in consumers’ benefit?
Or is the separation of the companies key to advancements in new technology?
Let us know in the comments below!