[boh]

That's easy to say in retrospect, but Apple stock would've also taken a hit buying what was a failing company at the time. It would've also demanded more resources and a strategic pivot on their part.

Apple makes long-term, informed decisions. Buying Tesla then and now is a pretty tough argument to make.

[easde]

Oh, I definitely agree that the most prudent decision a few years ago was to avoid Tesla like the plague. Why would Apple, the most profitable company in the world, want a nearly-bankrupt car manufacturer on its books?

Nevertheless, with the benefit of hindsight, it was likely the wrong decision from both a financial and strategic viewpoint. It's the kind of wrong decision Mark Zuckerberg avoided when Facebook bought Instagram and WhatsApp (despite being ridiculed at the time). Over the next decade, Tesla will likely be one of the most serious threats to Apple's dominance in high-end consumer tech goods (the other being companies working on AR/VR).

[boh]

It's never a good decision for Apple to buy Tesla, even in hindsight. Buying a capital intensive company within a heavily regulated industry is not the same as buying a social media company or a messaging app.

An increase in the stock price has little to do with the success of the actual business. Tesla hasn't gotten 600% better at being a car company. So far, Apple would only benefit from a Tesla purchase by selling the stock--which would defeat the whole purpose of buying it in the first place (Apple is not a hedge fund).