Reports have surfaced that Apple's top executive in charge of acquisitions, Adrian Perica, met with Tesla Motors chief executive Elon Musk in spring of 2013 to discuss possible business ventures together or maybe an iCar.
There are also reports that Apple CEO Tim Cook might have attended the high-profile meeting. Speculations have surfaced that the companies plan to hyperloop a deal so the iPad and iPhone manufacturer can penetrate the automobile market by purchasing the electric car maker.
"While a megadeal has yet to emerge (for all of its cash, Apple still plays hardball on valuation), such a high-level meeting between the two Silicon Valley giants involving their top dealmakers suggests Apple was very much interested in buying the electric car pioneer," reported San Francisco Chronicle, citing unnamed sources familiar to the matter.
Berenberg analyst Andaan Ahmad had called on Apple through an open letter in October that the best move of the company to improve its sustainability will be to shift to the automotive sector. The London-based analyst sees the partnership to boost the possibility of electric cars making it to the mainstream plus an the innovative persona of Musk to help the image of Apple. It seems Apple has been thinking ahead then since the said meeting happened roughly six months prior to Ahmad's unsolicited advice.
Spending around $25 billion to buy Tesla will not be an issue for Apple. The company, with around $160 billion in its cash pile, repurchased $14 billion worth of its own stocks recently. However, compared to Google that spent $3.2 billion to purchase Nest Labs, Apple's spending of late proves that it has a tight grip on its coffers. The latest biggest spending of the company had been $300 million to buy Kinect sensor make PrimeSense, and Topsy for just $200 million.
Analysts, meanwhile, have downplayed the meeting in Cupertino, saying an Apple-based device on the electric car's dashboard is more probable.
"They'd get access to deep pockets, but Tesla's got access to Wall Street right now. I could see a partnership more than a takeout," said Dougherty & Co. analyst Andrea James. "You could see a company with that kind of history making sure that they've got their options lined up. Tesla might get a backstop there."
There are also speculations that Apple will share the pie with Tesla when the latter starts operating the biggest battery plant on the planet. Musk disclosed that the venture will be in partnership with other well-known companies.
"..but so I'm very excited about our plans for... the the biggest battery plant in the world by far and we'll do it in partnership with the with some other companies and that's the shaping up really well...we'll be talking about it next month... were making the final selection I among as to which state it'll be an I in the next a month or so," Musk said in an interview.
Whether it is just Siri popping up on the Tesla dashboard or whether Apple will be fulfilling Steve Jobs dream of having an iCar, the tandem can be compared to the effects of colorful, sweet candies shown to a kid.
