Skip to main content

Why Tesla is the spark that Apple needs

By teaming up the two companies would address each other’s weaknesses. © Justin Prichard/AP By teaming up the two companies would address each other’s weaknesses. Apple’s dismal earnings announcement [1] shows why it badly needs to rethink its innovation model and leadership. Its last breakthrough innovation was the iPhone — which was released in 2007. Since then, Apple has simply been tweaking its componentry, adding faster processors and more advanced sensors, and playing with its size — making it bigger in the iPad and smaller in the Apple Watch. Chief executive Tim Cook is probably one of the most competent operations executives in the industry but is clearly not a technology visionary. Apple needs another Steve Jobs to reinvent itself otherwise it will join the ranks of HP and Compaq.

That Steve Jobs may be Elon Musk—who has proven to be the greatest visionary of our times.

In the same period that Apple released the iPhone and successors, Musk developed two generations of world-changing electric vehicles; perfected a new generation of battery technologies; and released first-generation autonomous driving capabilities. And that was in Tesla Motors. In his other company, SpaceX, Musk developed a spacecraft; docked it with the International Space Station and returned with cargo [2] . He’s launched two rockets to space that have made vertical landings back on Earth — one on a helicopter-like pad and another on a ship in the ocean.

Musk is also developing the Hyperloop, a high-speed transportation system in which pressurized capsules ride on an air cushion driven by linear induction motors and air compressors. In discussions that I had with him in 2012, Musk told me that his ambition was to build a space station and retire on Mars. He wasn’t joking, I expect he will do this.
[3]

Apple has reportedly been developing an electric vehicle because it sees a car as an iPhone on wheels. It is conceivable that it will demonstrate something like this in the next five to 10 years. But Tesla already has this technology — and it is amazing. I have likened [4] my Tesla Model S to a spaceship that travels on land. I consider it to be better than any Apple product — because it is more complex, elegant, and better designed than anything that Apple offers.

Would Musk be interested in being part of Apple when Tesla is on top of the world? Tesla just received nearly $20 billion in orders for its Model 3 — a record for any product in history. Musk reportedly turned down an acquisition offer from Google in 2003 when it was on the verge of bankruptcy.  Why would he consider such an offer now, from Apple?
[5]

My guess is that he would do this — if he were offered the chief executive role. A combination of an operations executive such as Cook and a visionary such as Musk would be formidable. Apple’s vast resources would allow Tesla to scale up his operations to deliver the nearly 400,000 orders it has received for the Model 3. Tesla would be able to leverage Apple’s global distribution network and incorporate many new technologies. Musk would be able to pursue his dream projects while Cook worried about delivery and detail.

And Cook would get the visionary that Apple badly needs, someone who is even a cut above Steve Jobs. The markets would rejoice and take Apple stock to a level higher than anything it has seen before.  Consider that Tesla’s market cap of $33 billion is eminently affordable by Apple, which has reserves of more than $200 billion. And Apple lost $47 billion in valuation with its earnings announcement Tuesday, which is more than it would likely cost to acquire Tesla.

This could be a marriage made in heaven. We would get world changing innovations as well as our space colonies. 

References

  1. ^ dismal earnings announcement (www.washingtonpost.com)
  2. ^ returned with cargo (wadhwa.com)
  3. ^ In discussions that (wadhwa.com)
  4. ^ have likened (www.youtube.com)
  5. ^ reportedly (www.bloomberg.com)
Labels:

Popular posts from this blog

R. Tiglao Exposed LTO Records Showing Aquino Never Bought or Sold a Porsche

Veteran columnist Rigoberto Tiglao exposed the Land Transportation Office (LTO) records of former President Benigno Aquino III showing that he never bought or sold an expensive Porsche car. The LTO records proved that the former President did not sold his Porsche 911 Carrera car which he claimed he bought for P5 million. The controversial Porsche car of the former President made headlines just months into his presidency but he explained that he bought the luxury car with the proceeds he got when he sold his BMW. Because of the furor from such display of opulence, Pres. Aquino claimed to have sold it six months later for exactly the same price. According to Tiglao during that time he asked through his column the LTO to release the car's deed of sale and registration to prove that it was not a gift from a Chinese-Filipino tycoon as rumored by some individuals critical to the President. The only possible way to discover whether the Porsche luxury was indeed sold was through ...
Read more

You can pay at a restaurant by smiling at a camera

© Provided by Engadget As easy as it is to make purchases in the era of tap-to-pay services , it's about to get easier still. Alipay (which handles purchases for Chinese shopping giant Alibaba) has launched what it says is the first payment system that uses facial recognition to complete the sale. If you visit one of KFC's KPRO restaurants in Hangzhou, China, you can pay for your panini or salad by smiling at a camera-equipped kiosk -- you need to verify the purchase on your phone, but you don't have to punch in digits or bring your phone up to an NFC reader. The system (Smile to Pay) is purportedly resistant to spoofing with photos and other tricks. It relies on both depth-sensing cameras and a "likeness detection algorithm" to make sure it's really you. Reportedly, the technology is good enough that it can accurately identify people even when they're disguising themselves through makeup or wigs. You shouldn't have to worry about someone buying ...
Read more

Tesla cloud account hacked to mine cryptocurrency

© Provided by The Hill An unidentified outside hacker infiltrated Tesla's Amazon cloud account and used its systems to quietly mine for cryptocurrencies, a cybersecurity firm announced Tuesday. The hack also potentially exposed the electric car company's data. Researchers for RedLock found that Tesla's credentials on an IT administrative console were not password protected. They made the discovery while trying to track down which organizations had left their Amazon Web Services (AWS) credentials openly exposed on the internet last month. The hackers quietly hijacked the console and began running scripts to generate virtual currency like bitcoin, the latest in a series of "cryptojacking" attacks. The researchers also found the hackers used "sophisticated evasion measures" to go undetected. A spokesperson for Tesla said the company learned about the breach in a company-sanctioned bug bounty program that pays outside hackers to discover vulnerabilitie...
Read more