It seems Apple could like to flex its financial muscle by putting its massive cash of $250 billion in acquiring a number of big companies, including the king of electric cars, Tesla Motors owned by Elon Musk. Citigroup recently listed Tesla among the seven companies that Apple Inc could take over if it decides to put its huge cash reserves to work. Apparently, 90 percent of the tech giant's company is just sitting idly overseas.
Apple Might Use Part Of It To Acquire Tesla Motors
A Citigroup analyst, Jim Suva has recently revealed this information through a note to the company's clients. Suva has taken a more realistic approach on how the Cupertino-based company can use its huge $250 billion cash reserve. He believed that Apple Inc. will use part of its cash reserve to take over some target companies. And one of the likely targets is Tesla Motors.
Is Tesla Bigger Now Than General Motors?
The revelation of the more than $51 billion massive market cap of Tesla made headlines last month. That means the electric car company is worth more than General Motors by about $1.7 billion. GM is supposed to be the biggest carmaker in the United States. However, Tesla's worth is based more on its potential than its current products or services.
Tesla Is The Cheapest In Terms of Market Cap
Among Apple's target companies, Tesla appears to be the most affordable in terms of market capitalization. Other companies in the crosshair of the tech giant have market caps ranging from $67 billion to $178 billion. These companies include Netflix and Walt Disney. And by its recent activities such as Project Titan, the Cupertino-based company seems to have clear intentions of entering the automotive segment. The company was recently allowed to start testing autonomous cars in California.
Will Elon Musk Allow Apple To Take Over His Company?
However, Tesla doesn't seem to be in a hurry for a takeover by another company. Its earnings call last week revealed that the company intends to automate the manufacturing process of its upcoming electric car, the Model 3 sedan. Musk even claimed that the automation of their car manufacturing process will make Tesla Motors equal to the value of Apple Inc.