News

Buy Tesla or Build One: Why Apple Should Make a Car

Published

11 years ago

February 25, 2015

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.

News

Tesla exec reveals shock development with Cybercab

“If we have to have a steering wheel, it can have a steering wheel and pedals.”

Published

6 hours ago

October 28, 2025

Joey Klender

(Credit: Teslarati)

Tesla is planning to launch the Cybercab in the second quarter of next year, and it is designed to be fully autonomous, so much so that the company is planning to build it without a steering wheel or pedals.

However, a Tesla executive said today that the company could ditch that idea altogether in what would be a major shift from the plans the company, and especially its CEO Elon Musk, have announced for the Cybercab.

Earlier today, Robyn Denholm, the company’s Chair for the Board of Directors, revealed that Tesla would potentially switch up its plans for the Cybercab based on potential regulatory requirements.

Credit: Tesla Europe & Middle East | X

Currently, even autonomous vehicles that operate for companies like Tesla and Waymo are required to have steering wheels and pedals. From a regulatory perspective, this could halt the plans Tesla has for Cybercab.

Denholm said in an interview with Bloomberg:

“If we have to have a steering wheel, it can have a steering wheel and pedals.”

Interestingly, Musk and Tesla have not veered away from the idea that the vehicle will be without these operational must-haves.

Since the vehicle was revealed last October at the We, Robot event in Los Angeles, Tesla has maintained that the car would be built without a steering wheel or pedals, and would equip two seats, which is what is statistically most popular in ride-sharing, as the vast majority of rides have only one or two passengers.

Musk doubled down on the plans for Cybercab as recently as last week, when he said:

“That’s really a vehicle that’s optimized for full autonomy. It, in fact, does not have a steering wheel or pedals and is really an enduring optimization on minimizing cost per mile for fully considered cost per mile of operation. For our other vehicles, they still have a little bit of the horse carriage thing going on where, obviously, if you’ve got steering wheels and pedals and you’re designing a car that people might want to go very direct past acceleration and tight cornering, like high-performance cars, then you’re going to design a different car than one that is optimized for a comfortable ride and doesn’t expect to go past sort of 85 or 90 miles an hour.”

Cybercab is fully conceptualized as a vehicle that has zero need for pedals or a steering wheel because it is aimed toward being fully reliant on a Level 5 autonomous platform.

Tesla is ramping its hiring for Cybercab vehicle manufacturing roles

Regulators could get in the way of this, however, and although the car could drive itself and be a great solution for ride-hailing, it might need to have these controls to hit the road in the future.

News

SpaceX opens up free Starlink service for those impacted by Hurricane Melissa

Published

8 hours ago

October 28, 2025

Joey Klender

(Credit: Starlink | X)

SpaceX is opening up its internet service, Starlink, to those impacted by Hurricane Melissa, as it made landfall in Jamaica and the Bahamas as a Category 5 storm.

Hurricane Melissa is expected to reach wind speeds of over 165 MPH over the next few days as it extends out into the Atlantic Ocean by Thursday and Friday.

Satellite imagery shows Hurricane #Melissa‘s growth from its formation on October 21 to a Category 5 hurricane through October 27, 2025. #HurricaneMelissa pic.twitter.com/goR3Hbgb9c
— The Weather Network (@weathernetwork) October 27, 2025

Citizens in Jamaica and the Bahamas have been preparing for the storm for the past week, getting necessary goods together and preparing for the massive storm to arrive. It finally did yesterday, and the first images and video of the storm are showing that it could destroy many parts of both countries.

Starlink is now being opened up for free until the end of November for those impacted by the storm in Jamaica and the Bahamas, SpaceX announced today:

For those impacted by Hurricane Melissa in Jamaica and the Bahamas, Starlink service is now free through the end of November to help with response and recovery efforts → https://t.co/fUko3xSviJ
— Starlink (@Starlink) October 28, 2025

It is a move similar to the one the company made last year as Hurricane Helene made its way through the United States, destroying homes and property across the East Coast. SpaceX offered free service for those impacted by the destruction caused by the storm.

The free Starlink service was available until the end of 2024.

Elon Musk’s companies have also made similar moves to help out those who are impacted by natural disasters. Tesla has offered Free Supercharging in the past, most notably during the California wildfires.

Tesla and SpaceX’s LA fire relief efforts: Cybertrucks, free Starlink and more

One major advantage of Starlink is that it is available for use in situations like this one, where power might be required to operate things like a modem and router.

Internet access is a crucial part of survival in these situations, especially as it can be the last leg some stand on to get in touch with emergency services or loved ones.

Elon Musk

Tesla board chair reiterates widely unmentioned point of Musk comp plan

Published

9 hours ago

October 28, 2025

Joey Klender

Credit: Tesla

Tesla Board Chair Robyn Denholm appeared on Bloomberg TV this morning to discuss the current status of CEO Elon Musk’s compensation plan, and used the opportunity to reiterate a widely unmentioned key point of the entire package.

Critics of the proposed pay package, which would pay Musk $1 trillion if he completes every tranche, routinely cite the sheer size of the payday.

Of course, many skeptics leave out the fact that he would only get that money if he were able to generate eight times the value the company currently has.

Tesla gains massive vote of confidence on compensation plan for Elon Musk

For Musk, it might have a little bit to do with money, but that is likely a very small percentage point of why the compensation package is being offered to him. He has reiterated that it is more about voting control and overall influence, especially as Tesla dives into robotics.

He said during the Q3 Earnings Call:

“My fundamental concern with regard to how much voting control I have at Tesla is if I go ahead and build this enormous robot army, can I just be ousted at some point in the future? That’s my biggest concern. That is really the only thing I’m trying to address with this. It’s called compensation, but it’s not like I’m going to go spend the money. It’s just, if we build this robot army, do I have at least a strong influence over that robot army, not current control, but a strong influence? That’s what it comes down to in a nutshell. I don’t feel comfortable wielding that robot army if I don’t have at least a strong influence.”

Tesla shares the idea that Musk is a crucial part of the company, and without him being awarded the voting control he feels he deserves, he could leave the company altogether.

The company is very obviously feeling the importance of the upcoming vote, as it has advertised and pushed heavily for the comp plan to be approved, mostly to retain Musk.

Tesla Board Chair Robyn Denholm said today to Bloomberg TV that it is crucial shareholders understand it is not about Musk’s potential wealth, but more about his influence on company decisions:

“So firstly, it is a performance package, so he gets nothing if he doesn’t perform against the pretty audacious milestones that are part of the performance criteria that’s been outlined by the board in the performance package. So, I think rather than compensation, it’s actually about the performance and the goals that we have for the company as we move forward. And so, for me, it really is about making sure that investors understand that they actually get paid if he hits the milestones before he will…Elon’s been very public, including on last week’s earnings call, about the fact that it’s around the voting influence that he could have in future shareholder meetings as opposed to the economic interests.”

Musk is not an incredibly flashy person. He does not have crazy cars or a massive house to go back to. He spends a lot of his time working and sometimes even sleeps at his office inside the factory.

He recently said he “only has what is needed” because “material possessions were making him weak.”