Apple Inc. (NASDAQ:AAPL) won’t buy Tesla Motors Inc (NASDAQ:TSLA). Instead, the iPhone maker would more likely form a partnership with the electric car maker, Ross Gerber said in an interview with CNBC.
The CEO said that his firm Gerber Kawasaki isn’t particularly opposed to Apple Inc. (NASDAQ:AAPL) utilizing its massive trove of cash to buy a company like Tesla Motors Inc (NASDAQ:TSLA) especially if the deal makes a lot of sense. However, he thinks Apple won’t buy Tesla outright.
Saying that Gerber Kawasaki is also a Tesla Motors Inc (NASDAQ:TSLA) shareholder, Gerber said that the real story with the car maker is its battery technology.
“What I see Apple doing is making an investment into the battery factory and helping Tesla raise capital. This is a big thing for Tesla because they need to spend billions more to advance the battery development in their new factory,” Gerber said.
He noted that the goal of Apple Inc. (NASDAQ:AAPL) is to own every screen there is in a household. People can see this strategy with the company’s expanding line of products. They now have a smartwatch, he noted, as well as Apple TV for the living room screen.
“The Tesla has a beautiful screen just waiting for Apple software and so I see a synergy here. I see an opportunity for a deal but I don’t see this as an acquisition and Apple will not be getting into the car business. The margins are not close to their normal margins,” Gerber said.
Regarding Apple Inc. (NASDAQ:AAPL) CEO Tim Cook being coy about buying Tesla Motors Inc (NASDAQ:TSLA) when recently questioned, Gerber said that this might be because Apple is indeed planning a strategic investment with Tesla but just not an outright acquisition of the whole company.
The executive and investor said that Apple Inc. (NASDAQ:AAPL) could spend about $4 billion to $5 billion or somewhere between 10% and 20% of Tesla Motors Inc (NASDAQ:TSLA) in order to get the screens in the car maker’s vehicles and the battery technology the company is developing.
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