Here’s Why Apple Should Make Elon Musk Its Next CEO, And Probably Also Buy SpaceX & Tesla
Apple is a behemoth of the market, and an unbelievably rich company. Elon Musk is a rare genius and visionary, but also a cash-strapped entrepreneur. Do you see where we're going with this?
Here's a case for appointing Elon Musk as the next CEO of Apple. A thought experiment, if you will. Let's see where it takes us.
Apple is insanely rich because it knows how to sell
Apple's market value is expected to hit $1 trillion this year. At the end of December 2017, the company had $285.1 billion cash in hand. That's an insane amount of money. More money than the foreign exchanges of Germany, UK, France, and then some. Apple can throw around all that money to buy anything it desires.
Apple's wealth has been built on its unique ability to sell products and services to hundreds of millions of consumers -- be it iPhones and Macs or apps and songs on its online stores. No one does this better than Apple, and the numbers are there for all to see.
Elon Musk can use some of that cash
Tesla and SpaceX are two Elon Musk-defining companies. But they're in a bit of a mess as far as money is concerned, especially Tesla. Tesla lost a record $671 million in the third quarter of 2017, burning through $1.4 billion of cash in all, according to Forbes. Investors are steadfast in absorbing Tesla's short-term setbacks, focusing instead on the big vision for the future. But concerns are definitely rising, especially with Tesla's Model 3 delays -- its mass market electric car.
While SpaceX is in a far better financial state than Tesla at the moment, it takes only a couple of rockets to explode for its stock to take a hit, as well. After all, SpaceX didn't turn a profit until last year, and the space race is one of extremely high risk -- but also huge rewards for the market leader.
Apple can easily buy both these companies and take them to the next level with some much needed cash infusion, and sort out any supply chain issues there maybe in SpaceX or Tesla's production cycles. Apple will also overnight have two future technologies companies on the threshold of making a big dent into their respective markets -- not a bad position to be for Apple, obviously.
Apple's juggernaut is losing steam
Apple maybe the most wealthiest company in the world right now, and continues to remain unmatched in the art of selling its products and services. However, analysts and consumers are getting weary of the Cupertino giant's inability to make ground-breaking innovations unlike the products and services it launched in the previous decade. Apple has set the bar so high for innovation in the past that it's finding difficult to match or surpass in present times.
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