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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.
Ferrari’s first electric vehicle, the Luce, is fully sold out for 2027, according to CEO Benedetto Vigna.
Presenting third-quarter results, he stated: “Everything we plan to sell next year is already fully allocated. Client test drives, scheduled for next year, will help further boost demand. We have no critical issues, neither on manufacturing nor on the demand side. Obviously, the car is more complex because it has many new parts and many new technologies.”
First customer deliveries are expected before the end of 2026, with the model already commanding waitlists despite a turbulent debut.
The Luce is a five-seat, four-door liftback saloon—the longest Ferrari ever produced—powered by four electric motors producing approximately 1,035 horsepower.
It features an 800-volt architecture, a 122-kWh battery, a claimed WLTP range of around 329 miles, 0-62 mph acceleration in 2.5 seconds, and a starting price near €550,000 in Europe (roughly $560,800–$615,000 in the U.S. depending on configuration).
Developed in collaboration with Jony Ive and Marc Newson’s LoveFrom studio alongside Ferrari’s own Centro Stile, it represents a deliberate departure from the brand’s traditional mid-engine sports cars toward a more spacious, grand-touring format.
Its exterior has proven deeply polarizing. Unveiled in Rome in May 2026, the design features smooth, sweeping surfaces, a large glass roof, and restrained detailing that critics described as bland, generic, or more reminiscent of an Apple product or mass-market EV than a Ferrari.
Ferrari unveils its Luce EV, and its reception has been a disaster
Online reactions included memes comparing it to a Nissan Leaf or Polestar, while former Ferrari chairman Luca di Montezemolo publicly warned of “the destruction of a myth” and suggested the prancing horse logo be removed. Italian politicians and longtime owners joined the chorus of disappointment, and Ferrari’s shares dropped roughly 8% in a single day, erasing billions in market value.
Design experts noted the absence of the brand’s signature tension, aggression, and emotional drama.
Yet the controversy has not translated into weak demand among the ultra-wealthy clientele who actually buy Ferraris. Production volumes remain tightly limited, as reports suggest fewer than 500 units in the current year and a longer-term pace of roughly 600 annually through 2030, preserving exclusivity.
One early chassis sold for $40 million at auction. Vigna has indicated that seeing the car in person, along with upcoming client test drives, is expected to strengthen rather than weaken interest. Ferrari aims for fully electric models to comprise 20 percent of its lineup by 2030, with a second EV now delayed to 2028.
For a brand defined by scarcity and desirability, the Luce’s sell-out status suggests that among those who can afford it, the polarizing design has not proven to be a commercial liability.
Tesla and SpaceX shares fell on Wednesday after Democrats swept both chambers of Congress. The decline stood out as broader market securities recovered and turned positive, while both of Musk’s publicly traded companies lagged.
CEO Elon Musk already joked about the unsuccessful campaigning for the Republicans, but now the new party will make pretty drastic changes to how it handles Tesla and SpaceX, and those companies will adjust their outlook.
Let’s take a deeper look.
Tesla ($TSLA)
Tesla shares traded lower during the regular session after Democrats secured both the House and Senate. The stock was down 2.32 percent at around 1:45 p.m. on the East Coast, trading at around $389.30.
The pressure is tied to more than the raw scale of Musk’s political spending, estimated at $450–474 million this cycle with roughly $224 million directed at Texas. In that state, Tesla now faces a Democratic governor and a Democratic senator after Gina Hinojosa unseated Greg Abbott and James Talarico defeated Ken Paxton.
The Austin Gigafactory, Robotaxi pilot programs in multiple Texas cities, and any related AI compute expansion sit under a new state executive who campaigned against certain corporate subsidies and floated a moratorium on new data-center construction.
Federally, Democratic control of key committees opens the door to deeper examination of Tesla’s autonomous-driving safety record, federal energy-storage and manufacturing incentives, and the national-security implications of any combination with SpaceX.
Investors are also weighing whether the company’s historically close alignment with the prior Republican leadership will invite slower permitting, additional hearings, or tighter rules on Full Self-Driving deployment.
For Tesla, the political shift adds near-term friction around state permitting and federal regulatory approvals for autonomy and energy storage. A potential merger with SpaceX may face slower review even if it proceeds.
Core growth drivers such as vehicle deliveries, energy deployments, and robotaxi rollout remain intact, yet the stock now carries a higher political-risk premium that could weigh on valuation until the company demonstrates workable relationships with the new Texas leadership and congressional majorities.
SpaceX ($SPCX)
SpaceX shares also declined in live trading on November 4 following the Democratic midterm sweep. The stock traded at $134.97, down 4.49 percent. The drop occurred even as broader indexes stabilized, highlighting a company-specific reaction to the election outcome.
Musk’s large contributions, concentrated in Texas races that both companies lost, place SpaceX’s Starbase launch facility and headquarters under a new Democratic governor.
At the federal level, Democratic control of Congress enables greater scrutiny of NASA, the Department of Defense, and other contracts that support a meaningful share of revenue, along with reviews of Starlink national-security uses and any Tesla merger. Analysts have noted that empowered committees can hold hearings and request documents on these relationships.
For SpaceX, the results raise the risk of delayed contract awards, higher compliance costs, and tighter constraints on AI and satellite infrastructure expansion, particularly in Texas where a data-center moratorium has been discussed.
A merger with Tesla could encounter political friction that slows integration of launch, connectivity, and autonomy capabilities.
While Starlink growth and launch cadence continue as primary drivers, the company faces a more contested path for federal funding and state-level operations, requiring management to rebuild ties with the new congressional majorities and Texas leadership to limit the overhang.
Tesla’s new vehicle registrations in Germany rose sharply in October, nearly quadrupling from the same month a year earlier. That’s according to data from the KBA, Germany’s federal motor transport authority.
The KBA reported 2,932 Tesla vehicles registered in October, a 290.9 percent year-over-year- increase. For the first ten months of the year, Tesla’s cumulative registrations reached 47,742 units. This number is up 206.1 percent compared with the January-October period of 2025. These gains occurred against a backdrop of strong overall growth in the BEV sector as a whole.
Germany registered 94,086 new BEVs in October, a 79.5 percent rise that brought the BEV share of the passenger car market to 37 percent of the 254,492 total cars registered that month.
🇩🇪 Tesla’s new registrations in Germany nearly quadrupled in October, according to KBA data.
October: 2,932 units, +290.9% YoY Jan–Oct: 47,742 units, +206.1%
Germany’s overall BEV market grew 79.5% to 94,086 units last month. https://t.co/GMwNqsFAOC
— TESLARATI (@Teslarati) November 4, 2026
Despite the percentage surge, Tesla’s absolute numbers left it with a 1.2 percent share of all new car registrations for October. Chinese competitors did record higher volumes, as BYD registered 5,173 vehicles, a 2 percent share, Leapmotor with 3,661 cars, which equates to 1.4 percent, and Xpeng had a 0.5 percent share.
Year-to-date through October, BYD edged ahead of Tesla with 47,961 registrations versus Tesla’s 47,742.
The October results follow a notably strong September for Tesla in Germany, when it registered 12,552 vehicles, an increase of roughly 269 percent year-over-year and one of its strongest monthly totals on record in the country. That month, the Model Y led all EVs and ranked among the top-selling vehicles of any powertrain.
The figures form part of a broader recovery in Tesla’s European registrations after an extended period of softer demand. While monthly volumes remain subject to typical quarter-end patterns and competitive pressure from both established European brands and rapidly expanding Chinese manufacturers, the year-to-date growth indicates improved traction in Europe’s largest car market.
Tesla’s Gigafactory Berlin-Brandenburg continues to supply the region, positioning the company to capture a share of the expanding German BEV market as overall EV adoptions looks to be accelerating.
Ferrari Luce sold out for 2027 after design controversy
Musk’s Tesla and SpaceX decline after Democratic Midterm sweep
