Tesla asked Apple to buy it

Elon Musk makes stunning revelation that he reached out to Tim Cook. But guess what happened.
The post Tesla asked Apple to buy it appeared first on The Motley Fool Australia. –

Tesla vehicles parked in front of Tesla building

Tesla Inc (NASDAQ: TSLA) chief Elon Musk has made a stunning claim that he once tried to get Apple Inc (NASDAQ: AAPL) to buy his company.

Musk tweeted the recollection on Wednesday morning Australian time.

“During the darkest days of the Model 3 program, I reached out to Tim Cook to discuss the possibility of Apple acquiring Tesla (for 1/10 of our current value),” he said.

“He refused to take the meeting.”

The bomb came the day after Apple revealed its plans to put out an all-electric passenger car to market by 2024.

A merger between the electric vehicle leader and the computing giant would have been a blockbuster deal. Apple is the world’s largest company by market capitalisation while Tesla is ranked 7th.

The combined capitalisation would be US$2.85 trillion as of Wednesday morning.

During the darkest days of the Model 3 program, I reached out to Tim Cook to discuss the possibility of Apple acquiring Tesla (for 1/10 of our current value). He refused to take the meeting.

— Elon Musk (@elonmusk) December 22, 2020

Bargain of the century?

Cook might have missed the deal of a lifetime, as Tesla shares have been on a tear in 2020.

The car maker’s stock price started at US$86.05 at the start of the year and is now US$640.34 — a 644% increase.

Apple itself hasn’t done badly either, starting 2020 at US$75.09 and trading now at US$131.88. That’s a 76% return for its shareholders.

Apple has been a beneficiary of the reliance on technology during the COVID-19 pandemic.

“[Tech] brands were used as a means of navigating the pandemic as most people opted for technology solutions to work remotely, learn, and keep entertained,” reported Dutch financial comparison site Bankr last week.

“Due to the companies’ ability to offer solutions during the pandemic, their stock rallied, indicating a sign of investor confidence amid economic turmoil.”

Tesla’s rally has been due to the confidence of investors that electric vehicles are the way of the future.

The Motley Fool US also reported that the company also “turned a corner” financially this year.

“It hit an inflection point in which it achieved the scale and developed the manufacturing prowess to start turning a profit,” wrote The Motley Fool US tech specialist Daniel Sparks.

“Consider how Tesla’s free cash flow and net income have improved over the past 12 months. The company has gone from annualised free cash flow and net income of negative US$4 billion and negative US$2 billion respectively one year ago to trailing-12-month (TTM) free cash flow of US$2 billion and TTM net income of US$556 million.”

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple and Tesla. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Tesla asked Apple to buy it appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!