Apple misses massive Tesla payday: Musk wanted to sell company for “one-tenth” its value
Apple missed out on a massive Tesla payday, with the EV brand’s boss, Elon Musk, admitting he reached out to the iPhone maker in an effort to have his company acquired for a fraction of its current market value.
Like most Musk admissions, this one came from Twitter, where the social-media happy CEO said he contacted Apple CEO Tim Cook when the brand was at its “darkest” as it struggled with ramping up production of the Model 3 in 2017.
What’s more, Musk says he was hoping to get around US$60b for the company – or “one-tenth its current value”, with the brand now boasting a market cap of between US$500b and US$600b.
“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).” Musk wrote.
So what happened? Did the meeting turn sour? Or could they not settle on a fair price? Neither. According to Musk, Cook brushed him entirely, refusing to even meet with the Tesla boss.
“He refused to take the meeting,” he wrote.
The deal wasn’t as crazy as it might sound. Remember, Apple was working on its own vehicle arm at the time – a program that has now shifted to developing autonomous technology – and acquiring Tesla would have given them access to valuable IP and infratructure. Reports today suggest Apple’s electric vehicle project might be back on.
Alas, the deal was never done. Or even discussed. And Tesla overcame its own issues to see its stock price soar.