Protection Street is making the case for an Apple-Tesla investment, and the automaker’s decision to thwart public might force Tesla to make a deal, venture capitalist Gene Munster declared in a blog post.
“If Tesla successfully turns the corner to profitability, the set of the two companies is nothing more than a fairy tale,” the managing pal of Loup Ventures said. But if Tesla continues to burn money, “Apple widen the gaps the upper hand.”
“Imagine all of the things you love about your iPhone, very integrated with all the things Tesla owners rave about,” claimed Munster, a long-time Apple analyst. “The two tech giants could parody over the auto industry over the next 20 years as consumers accept electric vehicles and automation.”
Both companies prioritize hardware destine, software and advancements in artificial intelligence, he said, and Apple undoubtedly has the equalize sheet for a deal.
A simple equity investment — Munster pegs it at a suppositional $10 billion — would hurl Apple to the forefront of the race to fully autonomous tour and give Tesla the chance to go private, which CEO Elon Musk definitely wants.
“Investors would feel that Apple is actually doing something with their coin of the realm,” Munster said. And, “Apple would not be spending on the impossible, like erection its own car to try to catch Tesla. Apple would be investing in making the leader yet better.”
But there are some holdups, Munster said: Mashing together the corresponding exactly culture of each company would be tricky, and Musk is unlikely to desert control.
As for an outright sale: Musk’s voting power and love for Tesla dos that hugely improbable, Munster said.