Apple shareholders are suggesting that the company consider purchasing electric car company Tesla.
At a shareholder meeting a number of shareholders asked about the possibility of a buyout, with Apple CEO Tim Cook evading the questions. What exactly could Apple purchasing Tesla mean for customers and for the company itself?
"Tesla has gone a long way toward being a real car company in such a short time. This is a timely and very expensive process to get that far along," said Kelley Blue Book senior analyst Karl Brauer. "If Apple was interested in going that route they could shortcut things tremendously if they purchased Tesla."
With Apple having announced recently that every major car brand company will be delivering cars with Apple's CarPlay info-tainment system, it seems likely that the company will make more moves toward the car industry.
Apple has the money and design expertise to be able to make a real mark in the auto industry. This is certainly something that could give Apple a competitive edge, and combined with Tesla's engineering prowess, there would almost certainly be a winner of a product.
Apart from giving Apple a competitive edge in the auto industry, Apple purchasing Tesla could also be good for Tesla itself. Tesla CEO Elon Musk has said on numerous occasions that the goal of Tesla is to accelerate the adoption of electric cars. Apple is known for being a marketing powerhouse, and Apple releasing an electric car would almost certainly speed up the electric car revolution.
Of course, a possible buyout would certainly benefit consumers as well. Fans of Apple products absolutely love their iPhones and iPads, and an Apple car would likely be no different.
"It would be fascinating if Apple went this direction because it's such a leap from anything they've done," continued Brauer. "I think they could still just be investigating. But ultimately, I think the fact they didn't have anything like an iPad or Apple Watch 10 years ago says something. They have a history of breaking out of their wheelhouse."
Of course, a buyout may not lead to a new car at all. While predominantly a car company, Tesla is also known for its advanced battery technology. It's also possible that Apple could want Tesla simply for the engineering masterminds behind it.
With $178 billion in cash, Apple certainly has enough money to buy Tesla. Despite this, it's seeming more and more like this buyout is simply a pipe dream for Tesla and Apple fanatics rather than a serious business possibility. If rumors are true, however, and Apple really is working on a car, then Tesla seems to have the right thinking and vision to line up with what Apple might want.