Thursday 5 February 2015

Is Apple Inc. Planning To Pin Down Tesla Motors Inc For Good?

The technology world went berserk last year when some publications reported that Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk had been spotted at Apple Inc.’s (NASDAQ:AAPL) headquarters in Cupertino, California. That meeting was quickly revealed to be a non-formal meet-up, and Mr. Musk confirmed that it was not about Apple potentially snapping up Tesla.

But a latest report from Patently Apple, a website that tracks Apple’s patent activity, may have just sparked another wave of speculations. Patently Apple has reportedly spotted an anomalous entry in
Is Apple Inc. Planning To Pin Down Tesla Motors Inc For Good?
Apple’s granted patent list. The patent goes by the name “Apple Electric Car, Inc.”, which popped up as part of the search triggered with routine keywords like “Apple” and “Inc”. It further concludes that this occurrence may just have been a “database quirk”, given that a simple Google and trademark search did not reveal any specific company linked with it, especially not Apple.

The patent, however, relates to technology that could enable and adjust a mounted computer screen in a high-tech gold cart. Patently Apple believes the patent may well have been acquired as one of the inventors directly associated with the golf cart computer screen invention has no connection to Apple Electric Car, Inc. Nothing except the striking name tag of the patent seems to point to Apple actually willing to take on Tesla. But patents aside, the two companies (both proven disruptors in their own space) have enough similarities to intrigue several technology analysts to think of a synergistic Apple-Tesla tie-up.


Both companies offer products that are a class apart from rivals, and are based on smart and distinctive technology. Mr. Musk even modeled Tesla’s direct sales method after Apple’s own direct distribution model involving characteristic Apple stores, instead of selling through franchisors; even though a direct-to-consumer business model is almost unheard off in the auto industry.

Speculations had particularly peaked last year when Apple displayed a keen interest in medical devices and the auto industry as part of future growth trajectories. The tech giant’s entry into medicine panned out as health related apps, as part of its HealthKit launched midway last year. As for the company’s interest in cars, all that has materialized by now is a really cool app on the Apple Watch that allows users to control Tesla EVs, such as checking on the available battery charge and temperature, the performance of basic functions like locking and unlocking the doors of the Model S, and controlling headlights.


While the patent in Apple’s name may not have confirmed its move into electric cars just yet, the possibility of the maker of iPhones either collaborating with Tesla or surprising the world with an iCar cannot be ruled off. Or maybe Apple may want to stay within the confines of its present technology edge and delve into related auto development aspects instead, such as an autonomous driving imitative similar to the one recently announced by app-based transportation network and taxi company Uber. Either ways, the waiting time to a high-profile entry by Apple into the auto industry just keeps extending for now.

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