Forbes bid to buy Tesla: The deal is not worth the trouble to stay in the company of Smolensk

Beijing Time November 13 News, U.S. technology blog Business Insider Tuesday published an article that Apple should buy Tesla. "The Forbes magazine writer Chuck Jones published an analysis article in Wednesday to refute this, that Apple should not buy Tesla, and listed Apple most of the cash in overseas, after the acquisition is difficult to retain Musk and other reasons."BMW will entertain casinos
The following is the full article:
Business Insider yesterday published an article saying that Apple should buy Tesla. It's an old-fashioned topic that seems to be popping up every few 6 months.
As Tesla CEO Ellon Masc Elon Musk said in the latest earnings call, car manufacturing is a very difficult job. Of course, Apple is well-versed in making millions of iphones, ipads, ipods, and Macs for the industry. I don't yet know which car manufacturer has outsourced the actual manufacturing of the product. From this perspective, Apple acquires Tesla to "streamline and refine Tesla's manufacturing process". Don't forget, Apple's production and sales of equipment reaches tens of millions of units, the size of the Tesla district thousands of is indeed far apart. In addition, the production process of the two products is very different.
However, Apple should not help other companies get out of the woods by buying. With the launch of the next-generation iphone 6, Apple's own product line is large enough and needs to be set to increase supply to meet demand. And Apple Watch will be on the market early next year, given the variety of options it offers consumers, and it needs to put a lot of effort into it.
Cash Off-shore
Apple currently holds $155 billion in cash and investment, compared with Tesla's market capitalisation of just $30 billion. If Apple buys Tesla at a 25% premium, it will have to pay $37.5 billion. Plus Tesla's $2.5 billion trillion debt, the total purchase amount is $40 billion.
The fact is that Apple's net cash in the United States is negative, with most of its cash in foreign countries: Apple has $18.1 billion in cash in the US, but with a debt of $35.3 billion (before the recent issuance of Eurobonds). The $18.1 billion cash is usually used for company operations. Unless Apple uses that money to buy Tesla, it can only be done by increasing the size of its borrowing or by shifting overseas cash back home.
If Apple wants to increase its borrowing in a timely manner, its credit rating will be lowered. While this will not have disastrous consequences, it is not a good thing. If you want to transfer $37.5 billion in net cash from overseas, Apple actually needs $47 billion in cash, according to the US 35% tax rate.
What can Apple get from acquiring Tesla?
Financially, analysts expect Tesla's 2015-year revenue to reach $6.25 billion, with earnings of just over $3 per share. According to this calculation, the total income of Tesla 144 million shares is $432 million. As a result, Apple pays 115 times times as much as the total earnings of Tesla shares.
If Apple were to borrow $37.5 billion to make a purchase, it would need to spend a huge amount of interest. It has just issued 8-and 12-year bonds in Europe, with interest rates of 1.082% and 1.671% respectively. By 1.082% per cent of interest rates alone, Apple will have to pay interest of $406 million, almost offsetting most of Tesla's expected earnings.
If Apple buys Tesla instead of cash and debt, it is doing equity financing: Assuming Apple's share price fell to $100 at the time of the takeover, it would need to issue 470 million new shares, increasing the number of shares from 5.9 billion to about 6.4 billion shares in the fiscal year ended September 2015.
Adding Tesla's $432 million share total to Apple's existing $44.4 billion earnings, assuming Apple's net profit growth was 1% per cent, and Apple's earnings for 2015 would drop from $7.51 to $6.99 in the case of a 8.5% increase in the number of shares. At 14 times-fold earnings, earnings per share fell by $0.5, and share prices fell $7, and market capitalisation evaporated by $41 billion.
Hard to stay, Marty.
Tesla CEO Ellon MASC Elon Musk will join the Apple board after the deal is reached, but if he is asked to report the company's business to others, I think he will not continue as CEO. Musk is the representative of Tesla's image and the driving force behind the development of the company. If he does not act as CEO, Tesla will no longer be the same company-think of what Tesla's share price would be like if he retired-and it could plummet and be back to its current level in a few quarters.
In addition, Musk is engaged in many other ventures, such as the operation of Space exploration technology company SpaceX, solar energy company Sun City and the super high-iron project Hyperloop. He may transfer the time spent on Tesla to these companies or projects.

Forbes bid to buy Tesla: The deal is not worth the trouble to stay in the company of Smolensk