Wall Street Pushes Apple Buyout Of Tesla

It has been suggested by Wall Street that cash rich Apple (AAPL) should consider purchasing Tesla (TSLA). The two companies have been inextricably linked over the last few years, owing to Apple’s endeavors in the electric car marketplace. But now financial sector analysts suggest that Tesla would be an ideal target for Apple, as the company looks to diversify its interests and revenue streams.

$200 billion cash lump

There have been numerous reports pointing to the $200 billion of cash in hand that Apple has available, and FBR & Co. is one Wall Street institution that believes Tesla should benefit from this status. In a recent note, FBR & Co.’s Dan Ives picked Tesla as one of the four big acquisition prospects for Apple. It is thought that the purchase of Tesla could play a major role as a growth generating engine for the corporation in the coming years.

Of particular interest to Apple would be the battery technology that Tesla has developed, which would make the corporation an especially attractive purchasing target. This could help Apple accelerate its entry into the next generation auto market, with the potential for Apple to build on the innovations that Tesla has already achieved with the development of the Apple Car.

Ives emphasized his belief that the electric car project that Apple has been reportedly developing will be a key initiative for the corporation in the future. An Apple Car has been rumored for some time, but this expected product seems to have been solidified by murmurings that have emerged this year. Leaked emails suggest that Apple has been negotiating to test an electric vehicle in the foreseeable future.

If Apple is to purchase Tesla, it would not come as a huge surprise to followers of the corporation, nor to Wall Street insiders. Apple and Tesla held talks previously, and the two companies have plotted a similar course in terms of ethos in recent years. At the time that Apple executives held talks with Tesla, the idea that the consumer electronics giant could purchase the electric car manufacturer was dismissed by both parties. But now it seems a distinct possibility, and one that would make both commercial and logistical sense for Apple.