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Elon Musk Talks Tesla, Apple, Model X

Nerval's Lobster writes "Tesla CEO Elon Musk admitted in a Bloomberg interview that he had engaged in 'conversations' with Apple, but refused to disclose the content of those talks. Rumors have circulated for several days that Apple executives met with Musk last spring about a possible acquisition. An anonymous source with knowledge of those discussions told SFGate.com that discussions included Adrian Perica, who heads up Apple's M&A division, and possibly Apple CEO Tim Cook. 'Both [Tesla and Apple] have built brands based on advanced engineering and stylish user-friendly design,' the newspaper noted. 'And each company has become a symbol of Silicon Valley innovation—even among people who don't own their products.' But in the interview, Musk framed an acquisition as 'very unlikely,' mostly because it would distract Tesla from its goal of building an affordable electric car. 'I don't see any scenario,' he added, in which Tesla could juggle the issues associated with a takeover while producing vehicles that met his perfectionist standards. He did suggest, however, that Apple's iOS and Google Android could find their respective ways into Tesla's in-vehicle software. Tesla executives once considered integrating an early version of Android into the company's first electric cars, but the software ultimately wasn't ready to serve as an automotive application. Nonetheless, Musk could see iOS or Android within the context of a 'projected mode or emulator' that would allow someone to use applications while driving, although 'that's peripheral to the goal of Tesla.'"

18 of 99 comments (clear)

  1. Re: Truly by Anonymous Coward · · Score: 4, Insightful

    It still takes someone with both skills and leadership to run a company properly.

      If you were on a boat, would you advocate throwing the captan overboard (assuming he wasn't bad) so that you and your shipmates can run things? Try it, and see how far you get before the next alpha male jockeys for power and control.

  2. Re:Truly by EvilSS · · Score: 2

    Why haven't the workers taken over and socialized the means of production yet? Why is our destiny as a species tied to the whims of a handful of super-wealthy idle parasites?

    Because in the end most humans are still greedy chimps at the core. Give us power and we will abuse it, and we will do anything we can to not share it. It's just human nature.

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  3. Well ... by the+bluebrain · · Score: 2, Interesting

    ... he's about the only person alive who could be a believable successor to Steve Jobs. So he's got that going for him :)

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    yes, we have no bananas
  4. Integration is in progress now by TrollstonButterbeans · · Score: 2

    The 2014 Honda Civic I have heard can interface with a phone via an HDMI cable. Full blown interfaces are inevitable, probably in less than 5 years.

    The selling point of integration via HDMI is that vehicles no longer need to have their own navigation systems (which is extra equipment and rather pointless in the smartphone era) and instead uses the phone navigation app.

    [Shorter version: Apple acquiring Tesla would be stupid for both companies. Tesla shouldn't exclude Android, Apple doesn't have an interest in the auto market --- and standard interfaces will be expected in the near future ... ]

    --
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  5. Re: Truly by Anonymous Coward · · Score: 2, Insightful

    Really? REALLY? First, I would hardly call Elon Musk an 'idle parasite'. Second, have you actually worked with the average American worker? You highly exaggerate the capability of the common man, while underestimating the importance of vision and leadership.

  6. Re:Dissimilar markets by GrahamCox · · Score: 2

    Electric cars are not yet a mature product. Just as computers weren't back in the early 1980s, when they either cost a fortune and didn't do much, or cost less and did much less. Electric cars are at that stage now, but whereas some people will be content to sit back and wait for it to mature, then jump on the bandwagon, others will be in the right place at the right time with the money and the vision to be the one to take it from expensive luxury that doesn't do much (in this case, range) to a mature product. Someone has to do it. Tesla are doing it on their own, they almost failed before they got a big injection of cash from investors and the govt., but even better would be for a company like Apple to back them financially while giving them a free rein. If not Apple, then someone else - if GM or Ford had any sense they'd be doing it, but they don't have the vision or the money, and they're to entrenched in the old world.

  7. Re:Apple rent part of Tesla's factory? by redback · · Score: 2

    It's more likely that if Apple was going to design a car, they would get just get Tesla to build it for them.

  8. Re:Dissimilar markets by Powercntrl · · Score: 3, Insightful

    Electric cars are not yet a mature product. Just as computers weren't back in the early 1980s, when they either cost a fortune and didn't do much, or cost less and did much less. Electric cars are at that stage now, but whereas some people will be content to sit back and wait for it to mature, then jump on the bandwagon, others will be in the right place at the right time with the money and the vision to be the one to take it from expensive luxury that doesn't do much (in this case, range) to a mature product.

    Unlike personal computing, cell phones or flat panel televisions, electric cars are not a new technology. They have been around in one form or another, since the 1880s. Vehicle body construction and electric motor design are both very well understood disciplines, as most advances in these areas had significant applications outside their use in electric cars.

    The technological limitation that's holding back electric cars has always been a lack of energy density in the batteries. Fixing that would be a holy grail for a number of different industries (imagine a smartphone that can last an entire week of heavy usage before needing to be recharged). Now, maybe it would be admirable if Tesla was fleecing the rich and dumping all the money back into battery R&D - but they're not. Elon has even said they're not much interested in pursuing fuel cell technology. They're buying off-the-shelf batteries from the same suppliers that build batteries for the rest of the portable electronics industry. Since batteries are a resource intensive product (they're made from commodity materials that must be mined and processed), there is always going to be a fixed cost associated with their production. Here's a free hint: more electric cars being sold will only put more demand on battery manufacturers, and I don't have to explain how supply and demand works.

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    DRM is like antifreeze, to the MPAA/RIAA it's sweet, to the consumers it's poison.
  9. Re:Truly by czert · · Score: 5, Informative

    Why haven't the workers taken over and socialized the means of production yet? Why is our destiny as a species tied to the whims of a handful of super-wealthy idle parasites?

    They did, in my country. And our destiny as a nation became tied to the whims of a handful of super-powerful idle parasites.

  10. Re:Dissimilar markets by DragonWyatt · · Score: 3, Informative

    They're buying off-the-shelf batteries from the same suppliers that build batteries for the rest of the portable electronics industry. Since batteries are a resource intensive product (they're made from commodity materials that must be mined and processed), there is always going to be a fixed cost associated with their production. Here's a free hint: more electric cars being sold will only put more demand on battery manufacturers, and I don't have to explain how supply and demand works.

    You are dead-on with with the reflection on the maturity of electric vehicles. They've been around a LONG time.

    But regarding battery manufacturing, you may have missed the recent news about Tesla's plans for building the world's largest battery factory this year - it seems that Musk has anticipated your concern:
    http://gigaom.com/2014/02/19/t...

    --
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  11. Can't wait for the iTesla by Anonymous Coward · · Score: 2, Funny

    Oh man, I can't wait for the iTesla. The whole exterior will be made out of smooth black glass; hell, the interior too. You'll only be able to download power from the iVolts store and the power won't be compatible with any other electronic device. It'll cost twice as much as a regular Tesla, but the interface is soooo much better. You just swipe the dashboard to make it go, press the button to make it stop and swipe left or right to steer. Who needs all those stupid buttons and wheels and crap? Plus, Apple will be able to patent the rounded tire, which will keep all those plebian imitators like Ford and BMW from usng rounded tires when we know Jobs innovated them.

  12. Dealerships by jpatters · · Score: 2

    I know Tesla doesn't want to have dealerships, but what if the talks had to do with some Apple Stores also becoming Tesla dealerships, at least in the states that are giving Tesla legal woes over selling directly to consumers?

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    "Remember, there never were pineapple-almond cookies here."
  13. Re:Dissimilar markets by Kjella · · Score: 3, Informative

    Unlike personal computing, cell phones or flat panel televisions, electric cars are not a new technology. They have been around in one form or another, since the 1880s. (...) The technological limitation that's holding back electric cars has always been a lack of energy density in the batteries.

    Sure, but the power grid was extremely different back then. If you had it - which by far most didn't - it was barely good enough to power light bulbs, not cars. Sure you could wire up a bunch of car batteries, drive it a little while but then it'd take a month to recharge. Between stoves, refridgerators, dish washers, washing machines, computers, TVs, power tools and whatnot it's only recently come to a point where in-home charging of a car is feasible. Even now they're suffering from growth pains just like the Internet adapted to Napster and YouTube, but they will pass. The other things is that there was no public charging grid, even if you got yourself an industrial size electric connection at home you'd be stuck in your little range circle. And unlike at home were you can reasonably be expected to let it charge overnight, on the road chargers must be much faster and stronger.

    Tesla's superchargers do 120 kW/car (here in Norway, I understand slightly lower in the US at the moment) and by their nature you want them in the middle of "nowhere" between cities. I don't know their total capacity - probably some oversubscription - but again I think it's something that only in very recent times has become feasible. Not to mention the rapid charging technology itself is very much state of the art. In short, even if we can't make miracles on density we are making huge advances in distribution and delivery. And as EVs become more popular, the grid will become more fine masked.

    I think there's really four ranges to an EV:
    1. Round-trip range - just charge at home, drive around and plug in when you get back home. No fuss, can use any parking spot.
    2. One-way range - if you have a charger at the office or cabin or shopping center parking lot or whereever you're going.
    3. Range with charging(s) - hopefully not too many snack breaks.
    4. You just can't do it. Go rent an ICE.

    If you break it down to percentages, most people's commutes and general shopping are in the first one. I know the Tesla has pushed interest in getting more power to cabins - not the "deep in the forest/mountains" cabin but the beachhouse and alpine skiing cabin that are in populated areas with a decent power grid. The third one is the one with most advances, it's not pretty or easy but you can do it the 1% of the time you need to. Really, if you can get rid of #4 and fulfill the 90%+ of driving inside #1 it's a winner. And they are making a lot of progress on shifting #4 into #3 through chargers, I mean it wouldn't be my first choice but that you can drive a Tesla coast to coast means you don't have to get an ICE.

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  14. Why HDMI and not wireless? by swb · · Score: 2

    Wireless mirroring is already a feature of iOS devices and AFAICT it can be done with Android too. This would be less cumbersome than HDMI cabling and avoid a clunky connector and adapter (at least for iOS phones).

    There's only two pieces missing from it -- remote touch, so you can use the car's built-in dash screen for control and display fitting, so the phone's display is formatted to fit the car screen's aspect ratio.

    The latter may be more complicated given the way apps seem to be written for iOS in regard to screen size (eg, updates to support iPhone 5, 1x/2x mode on iPad). The easiest 'fix' would seem to be a car display close in aspect ratio to iPhone (just larger to make it driver-friendly).

    Remote touch doesn't seem like it would be that hard to add, and for all I know its baked into mirroring, just not enabled. You could even disable display the keyboard or video playback as long as the vehicle is in motion (my Volvo does something similar with its in-built menu system; most of it is unavailable when the car is in motion).

    The phone display could just be another tab/view of the car's in-dash display which could then dispense with navigation apps and everything else that doesn't involve the controlling the car's components like HVAC or built-in radio.

  15. hello every body by mohsen123 · · Score: 2

    hello every body

  16. Re:Apple rent part of Tesla's factory? by spd_rcr · · Score: 2

    I would bet that Tesla is looking to sell their cars in Apple stores, much like Nest did with their fancy thermostats. Apple has the infrastructure in place to get broad coverage to the right demographic for Tesla.
    This would really make sense with Tesla's stated expansion into selling in China. it could also provide a non-direct-sales/dealership-network like the old school car makers are suing Tesla to adopt.
    I'm guessing if it happens, there'll also be an ipad replacing the regular big display in the center console.

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  17. It's the batteries, stupid. by Pliny · · Score: 3, Insightful

    If nothing else, both companies desperately need better battery technology. Could be they were talking about swapping patents or joint R&D.

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  18. Re:Never will happen by mattack2 · · Score: 2

    Very true but they aren't going to change industries altogether.

    Apple didn't change the phone business? The carriers (e.g. AT&T) used to say exactly what was on the phone and how the network was used. Now, at least to a large degree (of course there are still agreements and limitations), the maker of the phone itself says what's on the phone and all apps can use the network, etc.