Kamis, 06 Maret 2014

Apple Should Just Buy Tesla ... Before The Company Hits “60"

Tesla’s Model S accelerates fast.

But, Tesla’s stock is accelerating even faster.

Tesla’s market cap is now a jaw-dropping $31 Billion!  But, in my view, that stock ultimately will either crater completely or, more likely, $31 Billion will be a distant memory and seem like a bargain.  The early days of Apple, if you will ...

... ahh, this brings us to Apple.  Lots of speculation, of course, that Apple is eye-balling Tesla to become its “next big thing.”  I actually wrote about the logic behind such a move in June of 2013 (9 months ago), well before this rampant speculation that broke only a couple weeks ago.

But, you say, Tesla is simply too rich -- and perhaps even unworthy -- for Apple at its current $31 Billion market cap?

That is some real coin, of course.  But, don’t forget that Apple sits on a hoard of cash -- and that its market is $475 Billion.  Most importantly, Apple really does need its “next big thing.”  It appears that it has missed the boat in the living room with its long-anticipated iTV which, alas, still has not seen the light of day.

And, don’t forget that Facebook recently agreed to pay $19 Billion to buy WhatsApp.

Why not by a Tesla Model S instead of a virtual messaging app?

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