What do you get when you combine a multi-billion dollar company with another multi-billion dollar company?
A lot of money. That's what.
Apple's net worth is already more than $700 billion and the company is reportedly seeking to expand into the automobile industry. But with just about everything else Apple does, the potential "iCar" won't be like most other vehicles.
Customers take photos while waiting on line to purchase the Apple iPhone 5 outside the Apple Fifth Avenue flagship store on the first morning it went on sale on September 21, 2012 in New York City. Customers lined up for days to purchase the hotly anticipated device which went on sale nationwide today. (Photo by Mario Tama/Getty Images)
Analyst Jason Calacanis told Tech Times he believes Apple is in the process of developing a self-driving car. Major news outlets have reported that Apple already has a secret car development project, called "Titan" and others have said they've spotted driverless minivans near San Francisco, the area where Apple's headquarters are based.
So what could drive Apple to into the car market?
Elon Musk, the electric car company's founder, wouldn't confirm or deny that he'd met with Apple's acquisitions chief during an interview with Bloomberg February 19, although he said he doesn't currently see any scenario in which he would sell to Apple.
"If there was a scenario where it would be more likely that we could create the mass-market, compelling and affordable electric car it would make sense to entertain those discussions. I don't currently see any scenario that would approve of that probability so that's why I think it's very unlikely," Musk said.
Such an acquisition would make sense, Calacanis said, given Apple CEO Tim Cook's "obsession" with renewable energy. Calacanis predicted a formal deal will be announced sometime after Tesla unveils its new Model 3 sedan in 2017, which Musk has said will cost $35,000 before tax incentives. Because the new vehicle is expected to send Tesla's stock soaring, any deal with Apple that be coming would be considered a merger rather than an acquisition, Tech Times reported.
Calacanis said the merger could cost Apple a whopping $75 billion. Compared with the $740 billion Apple is currently worth, however, it's a small drop in the bucket. Tesla is reported to be worth about $25.5 billion.
(H/T: Tech Times)
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