Would-be Apple-Tesla Deal Kiboshed by Musk, Report Claims

In what kind of shape would Tesla find itself today if tech giant Apple had acquired the automaker in 2013? That’s a question for analysts to ponder in their off hours, as Apple’s reported offer went nowhere.

Craig Irwin, an analyst at Roth Capital Partners, claims specific knowledge of the failed bid, telling CNBC that Apple wished to acquire Tesla for $240 a share — a higher price than the automaker’s stock currently trades at.

Irwin’s remarks bolster, if not outright confirm, rumors that Apple once angled to bring the electric automaker into its corporate fold.

“Around 2013, there was a serious bid from Apple at around $240 a share,” Irwin said. “This is something we did multiple checks on. I have complete confidence that this is accurate. Apple bid for Tesla. I don’t know if it got to a formal paperwork stage, but I know from multiple different sources that this was very credible.”

The alleged bid went bust after “Apple wanted Elon Musk to step away,” Irwin said, adding that this “was a deal killer.”

This admission comes a day after Tesla’s once sky-high stock opened trading at under $200 — a remarkable decline from share values just months earlier. On the day of CEO Elon Musk’s fateful go-private tweet, August 7th, Tesla shares hit $379.57. Musk had indicated, via social media, his intention to take the company private at $420 a share. And we all know how that panned out.

Calling Apple’s 2013 bid “very credible,” Irwin said the interest shown in the company then prevents him from being too bearish on Tesla’s stock today.

“If Apple had interest then, they would probably have interest now at the right price,” he commented.

There’s no indication that Apple retains any interest in acquiring the troubled automaker, which ended its last quarter with a $702 million loss. Still, Apple remains interested in fueling the industry’s future, having pivoted from the development of a fully autonomous car to the development of self-driving systems for other automakers. Irwin claims the company is in the process of building large “dry rooms” in California, indicating a focus on lithium-ion battery propulsion.

“My checks are Apple is building several dry rooms, including a couple that are much larger than what you would need for watch or consumer product battery development,” he said.

[Image: Tesla]