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What If Apple Bought Tesla?

Rumors about Apple showing interest in buying Tesla have resurfaced after the SF Chronicle reported that Apple’s M&A chief met with Elon Musk last spring. Considering Tesla’s market capitalization of more than $24 billion, such a deal would be unprecedented for Apple, but the two companies do appear to have a lot of potential synergy.

As a thought experiment, let’s take a look at a few of the reasons Apple acquiring Tesla might make sense.

Apple has the cash for itApple still hasn’t found an ideal solution for its $160 billion cash hoard. Over the past year, the company has bought back $40 billion of its own shares, with plans to repurchase an additional $20 billion. That’s more than enough to have purchased Tesla outright. While there’s a certain sensible arrogance for a healthy company like Apple believing that repurchasing its own stock is the best investment of its cash, Tesla is poised for near-limitless growth if it can disrupt the automobile industry.

via The Next Web.

Tesla’s solution to battery shortages is to build its own ‘giga factory’

Tesla‘s ambitious plans for turning electric vehicles into a mainstream mode of transportation will require more power. A lot more power, judging by the latest quarterly report from the company, which included comments from CEO Elon Musk about a potential battery factory that would be owned and operated by Tesla itself:

Old battery packs would be converted into new ones within this proposed facility, which Musk describes as a “giga factory” that would be comparable in size to “all lithium-ion production in the world.” So, the man that introduced us to the idea of the Hyperloop, who happens to dabble in commercial space flight on the side, now also wants to build the world’s largest battery factory as well.

via The Verge.