Elon Musk, the revolutionary leader of Tesla Motors, has today admitted that the company may struggle to meet all preorders for the group’s Tesla Model 3. While deliveries are not expected to commence until 2017 the company already has over 300,000 orders in the bag although some experts are already putting back delivery dates to 2018/19. This is a bit of a blow for the company and has increased speculation that Apple, with an enormous cash pile, might be interested in taking the company under its wing.
While Tim Cook will forever have the shadow of Steve Jobs hanging over him he is still a formidable character. Apple itself is struggling from slowing income from its iPhone range which has increased speculation that the company will look elsewhere for its next new technological breakthrough. Historically the company has focused on groundbreaking technologies which can dominate a particular market - a criteria which Tesla would seem to fit?
So, Tesla has the technology and Apple has the deep pockets, is this really a match made in heaven?
To be head of Tesla Motors or Apple requires nerves of steel and unwavering confidence in everything that you do. These personality traits certainly apply to Tim Cook and Elon Musk but would the Tesla boss welcome his new position as a number two in the Apple Group?
There is no doubt that working together these two individuals could push Tesla to new levels allowing both Tesla and Apple investors to benefit. They are innovative, they are forwardthinking, they are not afraid to back their own judgement but they are ultimately loners. Each of these two individuals dominates the company they work for, they have complete control over future direction and live and die by their own decisions. Would any one of them trust their future, or at least part of their future, in the hands of somebody else?
[B]Could Elon Musk leave Tesla?[/B]
One interesting fact is that despite continued speculation Apple has refused to comment directly or indirectly on a potential move for Tesla. Some experts believe that Apple has postponed further work on its own electric vehicle and this could open the door for a move for Tesla. If this was to happen some analysts believe that Elon Musk would leave the group within two years to push his other ambitious projects. If Tim Cook or Elon Musk was to leave the enlarged group, Apple/Tesla, this would have a material impact upon the share price much of which is based upon the skill and foresight of these two individuals.
It has always been a concern for analysts that Elon Musk will at some point leave the group due to the fact he has numerous other ambitious projects on the go. There is no indication that he is looking to move at this moment in time but having to take a secondary role in an enlarged Apple/Tesla Motors group is not in his character.
Tesla is now stuck between a rock and a hard place, it needs additional funding to deliver all preorders of the new Tesla Model 3, yet many believe that Elon Musk is not prepared to give up any control of the group. This is a real quandary for all involved - what next?