Two Business Insider editors disagree on if Apple (AAPL) should buy Tesla Motors (TSLA).
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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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