By Amanda Weston
After CEO Elon Musk walked back his plans to take Tesla private, some analysts resurfaced the fantasy that Apple might be interested in buying the electric car maker. Loup Ventures managing partner Gene Munster thinks the match is inspired, but unlikely.
"The reason why it's a fairy tale is both companies are really beholden to their views on design. Musk is not going to give up design. Apple won't," Munster said Tuesday in an interview on Cheddar.
Still, there are plenty of reasons a deal makes sense. In fact, in a recent article, Munster wrote that "the two tech giants could take over the auto industry over the next 20 years."
For one thing, a partnership might help rein in Musk's sometimes-erratic style, Munster said.
"From Tesla's perspective, this answers the critical leadership question around the ability to run a company. The steady hand of Tim Cook can be a nice complement to the visionary of Elon Musk," Munster said. "I think that would be a unique combination that investors would applaud and appreciate. And then from Apple's perspective, they're trying to do more in auto."
Further, Apple could easily provide hardware, software, and A.I. resources to improve Tesla cars, something Munster sees as a big positive.
"Imagine all the things that you love about your iPhone in a car," Munster said. "They could tightly integrate the Tesla experience with the iOS experience."
There's also a potential marketing boost ー Model 3s could perhaps be displayed in some of Apple's 511 stores, Munster said.
What's stopping Munster from betting on a deal, for now, is his belief that Tesla will ultimately get its financial position in order and be able to survive on its own.
"But the quick twist is that if in fact Tesla runs into financial problems, they will need to have a suitor, and Apple's a likely suitor," he said.
For full interview click here.