APPLE TO BUY TESLA FOR $520?

TL;DR

A European investment bank predicts that Apple may acquire Tesla in 2019, which would be a significant acquisition in history.

Transcript

oh my goodness guys a big investment bank out of Europe is predicting the Apple will acquire Tesla in 2019 this would be arguably the biggest acquisition in the history of mankind I want to go ahead and look at the report on why they believe that Apple will go ahead and acquire Tesla guys then we got to answer some questions here okay is it even po... Read More

Key Insights

• 🚗 Saxo Bank predicts that Apple will acquire Tesla in 2019, emphasizing Apple's financial strength and the potential of the automobile industry.
• ❓ The acquisition would involve a substantial premium for Tesla shares.
• 🤝 From a regulation and financial standpoint, the deal is feasible, with Apple's cash reserves or the possibility of taking on debt.
• 👨‍💼 However, differences in their business models and the risk of negatively impacting Tesla's brand pose challenges.
• 😘 The likelihood of the deal happening in 2019 is considered to be very low.
• 🍉 Personal opinions vary, with some favoring the acquisition for potential short-term profits, while others see more value in Tesla's standalone growth.
• 🛩️ An alternative proposal suggests that Apple should make a smaller investment in Tesla, giving them the necessary capital without a complete acquisition.
• 🥳 Such an investment would be beneficial for both parties, allowing Tesla to fund its expansion plans and Apple to profit from Tesla's growth.

Questions & Answers

Q: Is it possible for Apple to acquire Tesla from a regulation standpoint?

Yes, as both companies are US-based and have different business models, the acquisition is likely to face few regulatory hurdles.

Q: Can Apple afford to buy Tesla?

Yes, Apple has substantial cash reserves and could acquire Tesla either through cash or by taking on debt.

Q: Would it make sense for Apple to buy Tesla?

While there are some challenges, Apple could benefit from Tesla's growth potential and its strong brand. However, there are also differences in their business models that may not align perfectly.

Q: Would it make sense for Tesla to sell out to Apple?

Tesla would gain access to Apple's financial resources, which could support its expansion plans. However, Tesla shareholders who believe in its long-term potential may not favor such an acquisition at the current price.

Summary & Key Takeaways

• Saxo Bank predicts that Apple will acquire Tesla in 2019, citing Apple's financial strength and the potential for deeper integration into users' lives through the automobile industry.

• The acquisition would involve a substantial premium for Tesla shares compared to the current trading price.

• From a regulation and financial standpoint, the deal is feasible, but there are considerations regarding the compatibility of their business models and the potential risks for both companies.