Why Apple should not buy Tesla
Don’t get me wrong: if Apple would buy Tesla, we would have a very, very potent merge. Tim Cook made Apple the most powerful company in the world, and Tesla as the most innovative car company. Still, Apple shouldn’t buy Tesla.
THE BUDGET TESLA WOULD DIE Apple and Tim Cook learned a lesson from the iPhone 5c flop, so we wouldn’t see an iPhone 5c of Teslas. Tesla has announced its’ plans for a 35.000$ model all the way back in 2013, but we haven’t heard any major updates since. At the moment, you most certainly have to spend more than 70.000$ to get a Tesla Model S, but I would spend a little more for an all wheel drive and better range (if I had the money…). The Roadster starts at 100.000$. This is the hurdle that most car buyers can’t overcome, and this is what Tesla and Elon Musk trying to tackle with the budget Tesla model to gain significant market share.
APPLE PRICES WOULD LIMIT MARKET SHARE Consider the history of Apple prices, the company tends to be overpriced. There are exceptions like the Retina 5k iMac, which is an unbelievable deal, considering a 5k Dell monitor alone costs around 2200$ and you will need to buy beastly, multiple GPU’s. Still, looking at the Apple Watch, Tim Cook announced insane prices: starting at 350$, you can spend all the way up to 17.000$ for the 18 karat gold Apple Watch. Yup, 17.000$. Considering how personal a car is to you in general, I think Apple could ask for 200.000$ and more.
THE CAR INDUSTRY NEEDS A CHANGE Think about it: Ever since the invention of the first gasoline-powered car (ironically the very first car was all electric) not much has changed. Every year car makers improves efficiency, aerodynamics and design, but nothing has fundamentally changed for 50+ years. Of course, there are connected cars, but the interfaces are not intuitive or beautiful. This is one thing that Apple would shine with on the Apple Car. Also, sooner or later, oil is not going to be available or be too expensive for transportation, and the sooner we start to be independent from it, the better. It will get very ugly. Tesla clearly has the most advanced technology in the electric car business. For example, the BMW i3 and i8 have a range of 50–65 miles. That is actually pretty embarrassing for BMW, with the new Tesla Roadster being able to get you 400 miles.
Originally published at techsational.com on March 15, 2015.