Two Business Insider editors disagree on if Apple (AAPL) should buy Tesla Motors (TSLA).
Source: ©iStock.com/xyno
Business Insider editors Jay Yarow and Matthew Debord have taken different sides on the debate. Yarow believes that Apple should buy Tesla and Debord believes that it shouldn’t. Let’s take a look at points raised by both of these editors in their Business Insider pieces.
Apple Should Buy Tesla
- The market cap for Tesla is $30 billion and Apple has access to $155 billion in cash.
- Apple is able to supply massive amounts of devices and Tesla is currently having a supply issue.
- The acquisition would give Tesla’s software an overhaul.
- Steve Jobs wanted to make a car and several Apple executives are interested in reinventing the car industry.
- The acquisition would free up Tesla CEO Elon Musk for more ventures while giving Apple access to his ideas.
Apple Should Not Buy Tesla
- Cars are harder to manufacture than smart devices.
- Apple executives are interested in luxury cars, not the mass market cars that are Tesla’s goal.
- A car company is hard to manage and faces the possibility of going through massive amounts of funds each quarter.
- Musk is a greater mind than what Jobs was and has goals beyond what Apple is doing.
- Tesla cars may not be relevant in another 20 years.
AAPL shares were up 1% as of Wednesday afternoon and TSLA shares were down slightly.
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