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Analyst calls on Apple to buy Tesla

This is the layman's understanding of how the tech world works: come up with an idea; execute idea; start making money; get bought out by Apple, Google or some other wealthy company seeking the Next Big Thing; retire to Fiji at age 23. Occasionally, though, one of those startups grows quickly enough to avoid being bought out by the big boys of Silicon Valley. Tesla is one such startup, and while it's an automaker as much as a tech company, the mingling of both worlds in its business model has helped the company survive since 2003, become publicly traded in 2010 and avoid being bought out by a bigger company (though the personality of its co-founder and CEO, Elon Musk, may have something to do with that, too).
This record of independence hasn't stopped the analysts from talking, though. According to CNN Money, Andaan Ahmad, a London-based investment banker with German bank Berenberg, has petitioned Apple CEO Tim Cook to buy out Tesla and bring Elon Musk into the Apple family. On paper, the move would sort of make sense: since the death of Steve Jobs, Apple appears to some to have been sagging, releasing better iterations of its currents products but lacking the big, new, industry-investing widget that makes people go mad. Expanding into the automotive market, a long-rumored destination for Apple, would allow the Cupertino, CA-based brand to stretch its legs in a new direction. As Ahmad notes, Apple needs to go "out of the box" or "the key debate will always be about [Apple's] ability to sustain these abnormal margins in [the] iPhone business."
Although not expressly discussed in the CNN story, we could also see some big benefits for Tesla. The Palo Alto-based automaker has been locked in a war over direct sales to customers with a number of dealership groups across the country, many of which have particularly powerful political lobbies. If Tesla had the backing of the world's most powerful company, which also has success in the business of upgrading traditional retail experiences, it could help establish the direct-sale model on a wider scale.

Tesla Model S track tested at Buttonwillow raceway

Many television viewers will know about the concept of a seven-second delay that allows producers to bleep any loose profanity during live shows before they make it to air. And we're imagining the driver of a Tesla Model S shooting down California's Buttonwillow Raceway may have cursed a bit once the electric vehicle's power limiter kicked in to keep the battery's heat down, because that added about seven seconds to the typical lap time around the 3.1-mile course, Teslarati says. Power-limiter not withstanding, the luxury EV appeared to do pretty well around that circuit, which is located near Bakersfield and about 130 miles north of Los Angeles. One happy dude at Teslarati turned in laps as low as 2:19 and change, beat out a Porsche 911 in acceleration and managed to keep the car on the track. The Tesla topped out at 113 miles per hour, but all that speed consumed electricity at about three times the typical rate. That means that, for the first 10 laps (which were the fastest), the 33 miles of actual distance used up 90 miles worth of range. And with the track's 240-volt outlets working to various degrees and Tesla's nearest Superchargers 50 miles away, there were some potential problems making sure the car could do all the driver wanted. But they're problems we'd love to have. Check out the 11-minute video of the escapade below. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Elon Musk says Model S demand in China could require new plant there

It's not exactly news when Tesla Motors chief Elon Musk talks big, but his prediction that sales of the Model S electric vehicle in China will require the California-based company to build a factory there is pretty substantial. Musk tells Bloomberg News that Tesla's sales in China could equal those in the US as soon as 2015. Could is the operative word here, though, since he backed off a tad by calling his production more "low fidelity" than firm. Still, Musk says demand will be strong enough that a factory in China could become a reality in the near future. Tesla recently set the price for the Model S in China at at about $121,000, which is about a 50-percent price premium compared to the US. And while that sounds steep, the extra cost is actually less than the doubling (relative to US) that usually happens when cars and trucks are imported in China. Looks like Musk wants to sell some cars in the People's Republic. Tesla finished strong in the US last year, moving about 6,900 of its battery-electric Model S sedans during the last three months of 2013. That made it the best-selling US plug-in vehicle during the fourth quarter. We'll be tracking when that same feat is achieved in China.