Apple Inc. (AAPL) Buy Tesla Motors Inc (TSLA)? Not Likely

Apple Inc. (AAPL) Buy Tesla Motors Inc (TSLA)? Not Likely
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More free advice for Apple Inc. (AAPL). This time it’s from Berenberg analyst Andaan Ahmad, who wrote an open letter to Apple CEO Tim Cook. At least this letter doesn’t have anything to do with Carl Icahn’s push for an immediate $150 billion share buyback, although the idea behind it might be even crazier than a share buyback. He thinks Apple should buy Tesla Motors Inc (NASDAQ:TSLA).

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Apple Inc. (AAPL) Buy Tesla Motors Inc (TSLA)? Not Likely

Why Apple should buy Tesla

CNN Money’s Virginia Harrison reports on Ahmad’s open letter to Cook. The analyst said Apple needs to shift into a new industry that will provide more sustainable revenue growth over the long term. He also said it would be a catalyst for the push from gas-guzzling vehicles over to hybrid and then electric vehicles.

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Ahmad also suggested that since Apple Inc. (NASDAQ:AAPL) and Tesla Motors Inc (NASDAQ:TSLA) both have a history of disrupting their industries, it would be a match made in heaven. And he adds that Apple could use a new Steve Jobs. What about Tesla CEO Elon Musk? He’s one innovator many have compared to Jobs, and Ahmad seems to think he would be good for Apple in terms of heading up innovation at the company.

Why Apple should leave Tesla alone

The analyst does note that many will probably call his idea crazy, as it certainly is. But not all crazy ideas work. While he’s right that Apple Inc. (NASDAQ:AAPL) needs to diversify its product portfolio with another hit device, a car is the wrong way to go. Apple may successfully integrate its services into vehicles, but will it ever make a vehicle of its own? I hope not. Apple is certainly no Google Inc (NASDAQ:GOOG).

The analyst also suggests that there’s a catalyst needed to shift car buying away from gasoline engines to hybrid and electric vehicles. Personally, I think this is something that’s going to come with time. No one’s going to run out and buy a new car immediately. Many can’t afford to do so. As a result, the transition is going to take many years.

And then there’s Ahmad’s suggestion that Elon Musk would even go to Apple. It just seems like such an odd thing to think. Would he sell Tesla Motors Inc (NASDAQ:TSLA) and then walk away to do something else? Perhaps, because he’s done it with all of his past companies. But will he sell it to Apple? I’m doubtful on that one.

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Michelle Jones is editor-in-chief for and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at
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