It has been predicted that Apple should buy Tesla Motors just before the Model 3 is released. This makes no sense for Elon Musk and the owners of Tesla. Tesla is winning and will do even better when the Gigafactory is producing batteries and the Model 3 is in production. Elon can easily raise tens of billions to finance expansions at Tesla. The money does not have to come from Apple.
Apple meanwhile has been building a larger and larger hoard of cash. Apple is nearing $200 billion in cash and cash equivalents. The cash is increasing at $18 billion per quarter and would increase faster if there were no stock buybacks.
Since the beginning of fiscal 2014, Apple has spent $45 billion to repurchase its stock.
Tim Cook reiterated his commitment to returning excess cash to shareholders.
Apple recent stock success has come from entering the China market with a deal with China mobile and finally following Android smartphone makers to making large smartphones. The success is copying what Google and other companies like Samsung were already doing.
This shows the lack of vision at Apple.
Elon Musk has product design vision as seen with the Tesla Model S and he successful achieve engineering wins. This is seen with Spacex, Tesla and Solar City.
Elon Musk and his new investors (Google and Fidelity) are planning to create a lower altitude network of thousands of satellites for high speed internet service. The plan is to create a global internet service that could help fund the city on Mars. Spacex satellite network would have up to 4000 smaller mass produced satellites that would fly at about 700 kilometers for faster response and communication speeds.
Larry Page of Google has said he would give his money to Elon Musk before giving it to charity.
Larry Page indicated that most companies are just doing incremental things.
The best way for Apple to get beyond the incremental steps of the last few years would be to hire Elon Musk as CEO. Elon would unleash the power of Apple’s cash to revolutionize the world and the solar system.
SOURCES – Wired, Apple Insider, Forbes
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.