2017 Tesla Model SEnlarge Photo
One could argue that Tesla is viewed as the Apple of the auto industry, even though the financial performance of each company is vastly different.
But with the convergence of the auto and tech industries continuing to accelerate, could there be a case for the two companies to be merged?
Citigroup thinks so as the bank has listed Tesla along with six other firms as potential takeover targets for Apple, Reuters reports.
The other firms fall into the software and entertainment industries and include names such as Netflix and Disney. Among the criteria were strategic fit, global scale, and the likely impact on Apple's share price.
Apple storeEnlarge Photo
Apple and Tesla have been poaching each other’s staff as they race to develop self-driving technology, so there are already some synergies.
Apple was also investigating the possibility of developing its own self-driving car but has since decided to focus purely on self-driving technology. And just last year there was talk of Apple acquiring McLaren.
The tech giant has also dabbled in the energy business with the construction of some solar farms. Tesla is also expanding into the energy business with its energy storage and solar roof projects.
Making investors salivate is the potential for Apple to repatriate approximately $250 billion in cash held overseas. Apple has been reluctant to do so due to a 35 percent tax charge, but under a proposed plan put forward by President Donald Trump the tax charge would be reduced to 10 percent. That would leave Apple with $225 billion to invest in U.S. assets.