Apple Will Never Buy Tesla

There has been a lot of talk this week about Apple (NASDAQ: AAPL  ) possibly buying Tesla Motors (NASDAQ: TSLA  ) , after Tesla CEO Elon Musk confirmed that the two companies have had "conversations." The rumors have sparked a wide range of emotions among investors, but is there any truth, or practical sense, to the idea?

In this video from Friday's Tech Teardown, Motley Fool tech and telecom bureau chief Evan Niu discusses why the narrative here may sound exciting on the surface, with many having compared the two companies to each other over the years as exciting disruptive innovators within their industries. However, he also tells investors why in his opinion, the deal couldn't make less sense financially. While Apple CEO Tim Cook did say recently that "huge" acquisitions aren't out of the question which may have fanned the flame further on these rumors, Evan notes that at an estimated $30 billion to buy Tesla which is in no way related to Apple's wheelhouse or core offerings, he sees this as a terrible fit.

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  • Report this Comment On February 23, 2014, at 10:48 PM, Ustauber wrote:


    FYI Iphones and Teslas uses the same Lithium-ion batteries.

    You should do some research before you go public like this.

  • Report this Comment On February 24, 2014, at 11:17 AM, ffbj wrote:

    Whaaaa! Yeah it's about time this baby got put to bed...enough already about Tesla, well at least that ridiculous, (nod to the commentator)Apple take-over story. Love Musk, love the company, sick of all the stories about it.

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Evan Niu

Evan is a Senior Technology Specialist at The Motley Fool. He was previously a Senior Trading Specialist at a major discount broker. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.

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