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Report: Apple to buy out Tesla in making self-driving cars?

Report: Apple to buy out Tesla in making self-driving cars? image

AutoIndustriya.com / Tesla | May 10, 2017 07:38

The makers of iPhone could soon be making cars with Tesla

Even though Apple got into a rough start in making autonomous vehicles, the California-based tech giant is well on their way in developing self-driving automobiles for public use. The topic of an Apple Car is nothing new. In fact, the latest news is that Apple acquired DMV licenses to test self-driving cars in California. This time however, it seems as if Apple might be planning to join forces with Tesla for their own vehicles.

Given that Apple has no prior experience or footing with the automotive industry, it would make more sense for them to buy out Tesla rather than go head to head with them. As of the moment, Apple is sitting on $250 billion US in free cash, which are stored overseas. This would allow Apple to hypothetically acquire about any company it wants or needs for whatever reason they choose.

Citigroup listed seven companies that Apple considers as potential takeover targets, including Tesla, Netflix, Hulu, Electronic Arts, Activision, Blizzard, Take Two Interactive Software, and Walt Disney. An analysts says that the companies chosen were the ones likely to impact Apple's share price.

Both Tim Cook and Elon Musk have both publicly stated that there is no plan to join forces despite continued talk of this idea. As to whether or not Apple will buy out Tesla, we will just have to wait and see what the big tech giant has in store.

 

Source: Reuters