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Buy Tesla or Build One: Why Apple Should Make a Car
Once Upon a Tesla
First there were the rumors that Apple might buy Tesla. Then came the loose talk about Apple employing an army of engineers to build their own car, many apparently leaving Tesla to join the effort and cashing in nicely. Now the rumors about Apple buying Tesla are back. Really, it’s hard to keep up.
It’s difficult to believe that the closed shop and tight-lipped Apple culture would purposely leak this kind of intel. Was it a disgruntled employee? Perhaps it’s just more difficult to keep a secret these days with Social Media eavesdropping as if it were a fly on the wall. Or, maybe it’s nothing at all.
Disclaimer
I drive a Model S and own TSLA stock. I’m an Apple fan, but don’t own APPL. My first computer was a Macintosh Powerbook 165 Series made in 1993. I still have it and it boots up even today. I’ve purchased a vast number of Apple products over the decades and I can’t think of a brand I’m more invested in than Apple. As an admirer of great design they won me over early on and continue to do so. And, I’ll be one of the first to get my wrist on the Apple Watch in April.
Barriers Were Made to be Broken
The idea of Apple designing and building a car is not new. For years many of us have been playing the game, “What would (fill in the blank) look like if Apple made it?” It’s right up there with the design school project to sketch out the “internet enabled refrigerator.” Apple broke the music barrier, the phone barrier and the design barrier for computers. Tesla broke the electric car barrier and they did it in ten years. They are the Jackie Robinson of the auto industry having flung open the door to electric vehicles while traditional auto makers refused to even seriously try.
Certainly there is some effort out of Detroit and others as of late and they should be applauded for realizing their miss. Mr. Musk’s gift of releasing Tesla’s patents was completely in line with the Tesla Way. I wonder how much of that intellectual property is being incorporated by others? My guess is not much. Companies prefer to take credit for their own innovation and invention; always thinking they can do it better.
Panic in Detroit
The media likes stirring the pot about how BMW is going to eat Tesla’s lunch and GM could put Tesla out of business tomorrow. And how Porsche is developing a “Tesla Fighter.” Today’s electric car activity outside of Tesla would not even be in the blue sky discussions if it weren’t for the success of the Model S. Tesla should not be dismissed as an “ankle biter,” which I would define as a non-threatening annoyance. Tesla is in fact a real threat to the car “smoke stack” industry. Respect Tesla or not, but know they are not going away. They may evolve or merge and it may not always be about cars, but it will likely be about some combination of energy and transportation, built on software and brilliant design.
Tesla’s 85kWh Model S encountering new competition in the EV space from BMW.
I make no bold predictions about Tesla’s potential market cap or when Apple will buy Tesla or for how much. That’s not my arena so I will stay in my lane. I agree it’s fun, but the stakes are on an entirely new level here. This activity is about something more important than corporate profits. (I know profits are important. I work in financial services). Tesla is fundamentally about designing and enabling an entirely new future that is more environmentally responsible than the past and better for consumers.
Tesla should inspire our imagination, not make us think about their stock price or how many cars they sold yesterday. Google didn’t think about their stock price when they launched their Autonomous Car project. Newer companies have a distinct advantage in that they don’t need to repack their baggage. When you lack a history it’s easier to make a better future.
It’s fascinating to me that Tesla and potentially Apple have more insight into what the “car of the future” could be than GM, Ford, or Chrysler. Is Silicon Valley the new Detroit?
Why Apple Must try for a Car
The world has become more connected over the last few years. The Internet of Things, powerful wireless connectivity and the transition to internet IPv6 will greatly expand the number of IP addresses that can be supported and makes a fully connected world possible. Apple’s seamless integration of device, content and software has made that world vision believable.
A large 17″ touchscreen center stack on the Model S provides an iPad-like experience.
A large touchscreen in a car like the Tesla could emulate your Mac, or iPad, or iPhone screen with shared apps and programs. My iCalendar already synchs with that touchscreen from my iPhone as soon as I open the door. Apple’s software capabilities could take this to fascinating extremes. Music, programs, even Siri are all possible in an Apple Car operating system. Not to mention self-driving cars and the ultimate vision to eliminate collisions.
I believe the challenge for Apple lies in the hardware. A car is not a music player or a phone. No one drives an Apple product. It doesn’t have wheels or doors; nor does it carry precious human cargo. There are very few laws that govern phone safety. No crash tests to pass, or airbags to install. A car is not just a software engineering exercise that needs a shell. It’s a big, complex, and messy manufacturing problem that cannot be outsourced to Foxconn.
Tesla does have amazing software, but it did not, and could not abandon the deeply ingrained culture of what it means to own and drive a car. Tesla’s big robotic engineering science coupled with Apple’s software capabilities would make an unstoppable combination.
Tim Cook tackling transportation is akin to Steve Jobs entering the retail space. It makes perfect sense for Apple and Apple’s vision. Their culture is to be a catalyst for innovation, vision and ultimately forward change. These are arguably the most important attributes for any business or culture.
If Apple is serious about making a car, they can choose their adventure. Buy Tesla, or build it on their own. Either way, I’m excited that we have another bright set of minds at work on disrupting a carbon monopoly. If Apple is now seriously in the game, it’s GM, Ford, Chrysler, BMW, Toyota, Honda, Nissan, BMW, Subaru… who should keep an eye on their lunch.
My One Prediction
Fast forward to 2021. Apple unveils their version of a car. Turns out I do have a prediction after all, and it’s rock solid. Apple will not sell their cars through a dealership network.
Tesla released what analysts believe the company will report in terms of deliveries and energy deployments for Q2, but the figures seem to confirm a long-standing theory on the company’s vehicle division.
For years, Tesla was just looked at as a car company. Now that it has established itself as a powerhouse in energy, AI, and tech as a whole, the company is now less hellbent on achieving quarterly growth, on a sequential basis, at least from a major standpoint.
Tesla topped out its annual deliveries in 2023 at 1.81 million, and in the two years since, the company has reported a decrease in deliveries for the entire 12-month term both times.
With Tesla delivering 358,023 cars in Q1, a 6.3 percent increase over Q1 2025, but falling short of Wall Street expectations at 365,000-370,000 units, the narrative around vehicle deliveries and their importance continued to change earlier this year. Some might say it is convenient, but others might say it is the typical evolution of a company that continues to change over time.
For Q2, Tesla’s delivery consensus estimates sit at 406,024 units, analysts believe. They were surveyed from Daiwa, DB, Wedbush, Cowen, Canaccord, Baird, Wolfe, BMP Paribas, Goldman Sachs, RBC, Evercore ISI, Barclays, Bank of America, Wells Fargo, Morgan Stanley, Truist, UBS, Jefferies, JPM, Needham & Co., HSBC, and William Blair.
Credit: Tesla
Tesla is also expected to report deployments of 13.8 GWh this quarter.
The change to Tesla’s overall narrative now leans less on vehicle deliveries and more on its other projects. Most notably, Tesla’s Robotaxi project has taken the priority over most of its other business ventures, and investors and the public are more concerned about the deployment of vehicles into the fleet, the operation of a driverless ride-hailing service, Cybercab production and operation, and expansion into new cities.
Tesla analyst realizes one big thing about the stock: deliveries are losing importance
This big narrative switch happened when Tesla indicated it was looking at making transportation a service by launching a ride-hailing service that will operate using Tesla’s Full Self-Driving suite. Once unsupervised operation begins, Robotaxi could be a new way for people to get around, all without a driver in their car.
Instead, they will rely on the billions of miles Tesla has accumulated from its real-world fleet.
It is important to note that Tesla remains significant in the automotive sector, and deliveries must continue as they have for years. Tesla still has a strong automotive business and needs to execute further on all facets to keep its investors happy.
Tesla launched the slightly larger Model Y L in China last year, and it became a hit in no time. The longer wheelbase, larger interior, and slightly more forgiving legroom area in the Model Y L became a sought-after possibility for U.S. buyers, who have been begging the company for a larger SUV.
Now, Tesla needs it more than ever, especially considering the Model X was discontinued alongside its Model S sibling earlier this year. It looks to be more likely than ever, and based on recent reports, it will fall in line with CEO Elon Musk’s prediction that it would arrive in the United States in late 2026.
Recent reports from Forbes and Not a Tesla App both have indicated Tesla plans to bring the Model Y L to the U.S. this year. The reports cite “credible sources,” and an analyst from AutoForecast Solutions named Sam Fiorani stated that the car would enter production later this year.
Fiorani said:
“China, Australia, and India are supplied by the factory in China, which will not supply vehicles to the U.S. Production of the Model Y L is expected to begin in the U.S. in September, which will lead to sales beginning before the end of 2026.”
Production would take place at Gigafactory Texas.
Additionally, a few Model Y L units have been spotted under wraps in the United States, giving more indication that Tesla plans to bring the vehicle to the U.S. When Tesla is close to launching a vehicle in the U.S., it is not uncommon to see these models with the exact car covers that you see below:
Looks like another Tesla Model Y L was spotted in the U.S.! pic.twitter.com/jhsdkcN5Go
— TESLARATI (@Teslarati) June 26, 2026
It makes sense, especially considering Musk hinted the Model Y L would make it to the U.S. in late 2026, but it was up in the air. The CEO said the advent of self-driving might not warrant a larger SUV coming to the U.S. market specifically.
The problem is, consumers do not want to hear that. They love Tesla’s tech, FSD, and other features, but they need more space for growing families. The Model X is gone, and the most anyone can fit in a Tesla right now is seven people in the seven-seat Model Y. That back row is truly only large enough to fit small children comfortably.
Tesla fans have requested a full-size SUV, and the company has made some hints that it could be in the plans.
The Model Y and Model Y L differ noticeably in size, with the Model Y L being a stretched, six-seat variant designed for great interior room. The Standard Model Y measures approximately 4,790mm in length, 1,982 mm in width with the mirrors folded, 1,624mm in height, and 2,890mm in wheel base.
In contrast, the Model Y L extends to be about 4,969–4,976mm long (roughly 179mm or 7 inches longer), stands 1,668mm tall (+44mm), and features a significantly longer 3,040 mm wheelbase (+150mm), while maintaining the same width.
This elongation primarily benefits rear passenger space and enables a 2+2+2 seating layout with captain’s chairs, though it slightly reduces maximum cargo capacity behind the rearmost seats and adds a bit of overall mass and turning radius. The result is a more spacious family hauler that still shares the core footprint and agile character of the original Model Y.
In a major development that will inevitably strengthen Tesla’s dominant position in the American EV market, Polestar has been effectively banned from selling new vehicles in the United States, starting with the 2027 model year.
The U.S. Department of Commerce denied Polestar authorization under the Connected Vehicle Rule, which prohibits vehicles containing certain connected technologies (Cellular, Wi-Fi, Bluetooth, etc.) linked to China or Russia due to national security risks, including potential data collection on American drivers.
🚨 A Tesla competitor goes down
Polestar will no longer sell new vehicles in the United States starting with the 2027 model year.
The U.S. Department of Commerce denied the brand authorization under the Connected Vehicle Rule, which restricts the sale of cars with software and… pic.twitter.com/TrwnQeoiES
— TESLARATI (@Teslarati) June 25, 2026
Polestar, which is majority-owned by China’s Geely Holding, could not obtain the required exemption despite producing some models domestically.
Polestar confirmed it will sell off any remaining inventory of the Polestar 3 and Polestar 4 models, while continuing service and warranty support for existing customers. No new models or major refreshes will reach U.S. buyers, and the company is pivoting its growth strategy to Europe, where it already generates the vast majority of its sales.
The outcome removes a direct premium EV competitor that had positioned itself as a stylish, performance-oriented alternative to Tesla’s lineup. The Polestar 2 challenged the Model 3, while the Polestar 3 and 4 targeted segments overlapping with the Model Y and upcoming Tesla offerings. Polestar’s U.S. sales had already been sluggish amid intense competition and slower demand, representing just 6 percent of its global volume in the first quarter of 2026.
While Polestar was not on Tesla’s level in the U.S., it still places a dent in the evergrowing field of Tesla competitors in the country, where it has long dominated EV sales.
Tesla faces none of these hurdles. As a U.S.-founded and U.S.-headquartered company with major manufacturing in Fremont, Austin, and Nevada, Tesla’s vehicles are built with compliant domestic and allied supply chains. Its Full Self-Driving technology, over-the-air software updates, and vertically integrated ecosystem were developed entirely in-house without foreign ownership entanglements that trigger national security reviews, at least in the U.S.
Of course, it did face a similar threat in China a few years back:
Elon Musk responds to reports of Tesla ban among China’s military over security concerns
The Connected Vehicle Rule, first advanced under the prior administration and upheld under the current one, is part of a broader U.S. effort to protect the domestic auto industry and critical technology from Chinese influence. High tariffs on Chinese-made EVs and related restrictions have already reshaped the market. Tesla benefits directly: it avoids these barriers while continuing to lead in U.S. EV sales volume, Supercharger network expansion, and energy storage integration.
By clearing Polestar from the new-vehicle playing field, the policy reduces competitive pressure in the premium and performance EV segments where Tesla has invested billions. American consumers seeking cutting-edge electric vehicles now have one fewer option tied to foreign adversaries — and one clearer path to the market leader that has driven the EV transition from the start.
For Tesla, this is more than regulatory relief. It is a strategic tailwind that reinforces its position as America’s premier EV innovator at a time when domestic manufacturing and technological independence matter most.
Tesla Q2 delivery consensus confirms this long-standing theory
Tesla looks keen to bring larger Model Y L to the U.S.
