Tesla reveals earnings surge as Apple merger rumours rev up

Prestige electric car maker Tesla Motors has revealed Q4 earnings of $46 million before tax, or 33 cents a share, in what has been described as a “powerful quarter,” boosted by the sale of nearly 7,000 of the Silicon Valley-based company’s Model S sedans.

The result – a vast improvement on the same time last year, when the company lost 65 cents a share – follows hot on the heels of a new closing high for the EV maker, when expectations of a strong fourth quarter combined with rumours of a possible Apple merger to send Tesla shares to a record of $205.72 in intraday trading on Tuesday, before closing at $203.70.

According to reports, investors were reacting to news of a meeting between Elon Musk, Tesla’s billionaire chief executive and co-founder, and Apple’s Adrian Perica, a former Goldman Sachs investment banker who heads Apple’s mergers and acquisitions team.

As it happens, the meeting occurred in early 2013, but was reported by the San Francisco Chronicle this week, citing unnamed sources, and with no details on what was discussed.

Nonetheless, this was enough information to spark speculation of an imminent Apple-Tesla merger or, at the very least, collaboration.

“Bottom line,” says the Huffington Post’s Alison van Diggelen: “Apple needs some serious visionary power to keep its innovative reputation alive.”

Musk, of course, has this in spades. Just last month he broached plans to build “the biggest battery plant in the world by far;” a project he said Tesla would undertake in partnership with other companies.

Some are speculating this is what the meeting with Apple was all about. A further announcement is expected on this from Tesla sometime this month.