February 17, 2015
Last Friday, angel investor and Internet entrepreneur Jason Calacanis wrote in a blog post that he predicts that Apple will acquire Tesla sometime in the next 18 months. Additionally, he predicts that the company will do so for the amount of $75 billion – a whopping sum, especially for a company not known to make such large acquisitions. Calacanis, whose most notable success is having sold Weblogs, Inc. in 2005 for around $25 million to $30 million, notes in the post that he is affiliated with neither company; rather, the prediction is based on current trends and the recent actions taken by both companies in recent months.
Recently, conversations around Silicon Valley center around the belief that Apple is setting itself up to compete seriously against Tesla. With recent rumors surrounding Apple’s “Titan” project, the company is predicted to do something big in the electric car industry. The company has been reported to be aggressively poaching Tesla engineers, while Tesla is apparently doing the same with Apple employees. In his prediction, Calacanis notes these facts, plus the the upcoming moves for Tesla, including the expected announcements regarding Tesla’s Model 3.
Rumors surrounding Apple’s acquisition of the premier electric car company has been floating around since 2013, when Apple’s head of mergers & acquisitions, Adrian Perica, and Apple CEO, Tim Cook, met with Elon Musk. For Calacanis, the prediction is largely dependent on Apple’s (read: Tim Cook’s) interest in renewable energy and this interest in electric cars. In his blog post, Calacanis lays out 19 reasons why he believes Apple will acquire Tesla for $75 billion within the next 18 months. Read some of his reasons below:
“Apple’s Tim Cook very much wants to pursue the kind of “our-shoring” (I made that word up), that Elon has mastered. In fact, Apple wants to build an all-renewable energy production facility in Mesa, AZ (anyone know the latest on that?), and they are building the Mac Pro (the sexy black mini-cylinder) at their Texas facility.”
“Tim Cook is obsessed with renewable energy, so much so that he told climate deniers to not hold Apple stock, and he is investing $850m to build a giant solar farm to power Apple’s new HQ.”
“Self-driving cars will be in the market in 7-10 years in a major way (you’ll test one in the next three years, of course), which means that with Apple and Tesla’s combined progress in this market, they could have the entire line refreshed and ready for a makeover for the coming driverless revolution.”
“No one else in the world could actually make a run at Tesla, because they either don’t have the cash and, most importantly, they don’t have the ability to give assurances to Elon that they won’t f@#$ it up. Apple’s design team, software, and global distribution would actually LEVEL Tesla up.”
“Apple would need at least seven years to get a car on the road: three or four years to design it, followed by three to five years of building factories capable of any sort of modest capacity.”
“Google’s design and global distribution (for products) just sucks, and they are all over the place. I can’t see Google buying Tesla and making it that much better. Sure, they have some data and some technology, but it feels like that isn’t as important for Tesla right now.”
Just last week, Tesla’s Musk announced that the company is working on an electric battery for homes – another step further into sustainable energy…and another reason why a predicted Apple acquisition wouldn’t be entirely out of the question. Read the rest of Calacanis’s reasons for his prediction on his blog post.
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