Tim Cook, chief executive officer of Apple Inc., refused to attend a meeting years ago to discuss the acquisition of Tesla Inc., Elon Musk said Tuesday.
Tesla CEO Musk said in a tweet that he reached out to Apple during the “darkest days” of his company’s Model 3 development to discuss a possible deal. Musk said he planned to discuss the possibility of selling Tesla to Apple for a tenth of its current value, which suggests a valuation of about $ 60 billion.
In 2017, Tesla burned cash as production of its Model 3 electric vehicle increased for the mass market. Musk told employees at the Fremont, Calif. Facility, that it was six months or more ahead of a “production hell” period. Weeks after making the statement, he tweeted about sleeping on the roof of a factory while trying to fix bottlenecks.
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 attend the meeting.
– Elon Musk (@elonmusk) December 22, 2020
It did so around the same time that Apple decided to move from developing a full-fledged Tesla competitor to an underlying self-driving car system. In recent years, Apple has hired a number of former Tesla executives who specialize in powertrain, interior vehicle, and self-drive technology. It has also acquired companies that specialize in self-driving car development, which suggests the company is re-considering entering the market.
An Apple spokesperson declined to comment on Musk’s remarks. Tesla did not respond to a request for comment at the time of the offer described by Musk.
Apple and Tesla stocks have soared since early 2017. Tesla is up more – around 1,400% – but is still worth less than a third of Apple’s market cap. This week, Apple’s stock has risen, while Tesla has indicated in a Reuters report that Apple plans to produce a driverless car for consumers in 2024.
Bloomberg News reported earlier this month that Apple had shifted leadership of its auto project from former top engineer Bob Mansfield to John Giannandrea, indicating its self-driving technology and focus on artificial intelligence.
Musk’s comment on Apple came a day after Tesla joined Apple in the S&P 500 benchmark index and capped a year in which its stock rose. Investors have bid for the shares as the company has made five consecutive quarters in profit.
Tesla’s troubles continued until 2018 when Musk tweeted that he had “secured the funding” to take the company private. As a result, he agreed to pay $ 20 million to settle with the U.S. Securities and Exchange Commission, but remains facing an investor lawsuit. Tesla shares are up about 800% since that tweet.
I’m considering taking Tesla privately for $ 420. Financing secured.
– Elon Musk (@elonmusk) 7th August 2018
(Updates with Tesla addition to the S&P 500 index in the penultimate paragraph.)
(Except for the headline, this story was not edited by GossipMantri staff and published from a syndicated feed.)