In an article today, published by The San Francisco Chronicle, reporters Thomas Lee and David R. Baker wrote that Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk met with Apple Inc. (NASDAQ:AAPL)’s chief of mergers and acquisitions and “probably” Apple CEO Tim Cook. According to a source unnamed, the meeting was held in Apple’s Cupertino, CA headquarters sometime last spring.
Apple’s mergers and acquisition chief, Adrian Perica, could never be accused of laziness given Apple’s buying spree since he began his tenure. The company acquired 13 companies in 2013, and to start it’s 2014 shopping purchased SnappyLabs for an undisclosed amount of cash.
Tesla Motors Inc (NASDAQ:TSLA)’s future
But Tesla, is a long way from SnappyLabs photography software with a massive valuation. When Tesla topped the $200 mark this week it pushed the automakers market capitalization to over $24 billion, half the market cap of General Motors.
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The company’s shares gained 344% in 2013, and are already up 34% to start this year.
“While a megadeal has yet to emerge (for all of its cash, Apple still plays hardball on valuation), such a high-level meeting between the two Silicon Valley giants involving their top dealmakers suggests Apple was very much interested in buying the electric car pioneer,” the report said.
Apple, amidst slowed sales in smartphones and tablets must find new products, but a purchase of Tesla would be a massive turn for Apple as its looks for additions to its current product line and core business. Obviously, Tesla Motors Inc (NASDAQ:TSLA) would certainly provide a new source of revenues for the iPhone manufacturer.
New products for Apple Inc. (NASDAQ:AAPL)
While analysts expect new product releases this year with the best guesses being the introduction of the long awaited “iWatch” and a breakthrough update to Apple TV with the signing of a major content provider, it appears that Apple is very interested in medical technologies as well.
The report from The Chronicle also that that Apple was looking at sensor technology that can help predict heart attacks. Tomlinson Holman, who can claim THX and 10.2 surround sound among his inventions, was hired by Apple to study the sound patterns of blood with the thinking that it could combat heart disease by measuring the sound it makes as it travels through arteries.
Tesla Motors Inc (NASDAQ:TSLA) and Apple Inc. (NASDAQ:AAPL) combination
Tesla Motors Inc (NASDAQ:TSLA) would be a major purchase for Apple Inc. (NASDAQ:AAPL), but it has shown a willingness to splash the cash. Last month, the company wrote in a regulatory filing that it spent $525 million on deals in the previous quarter, almost double what it spent for the year prior.