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Will you be driving an iCar soon?

As reports of a meeting between head honchos at Apple and electric car manufacturer Tesla Motors spark excitement in the tech industry, rumors of a potential 'iCar' have gathered pace.

According to an article in the San Francisco Chronicle published Monday, Apple's merger and acquisition chief Adrian Perica met with Tesla CEO Elon Musk at Apple's headquarters in Cupertino, California in early 2013.

"Do I think Apple is buying Tesla? Probably not, would they do a collaboration? I think that would be exciting," Scott Redler, chief strategic officer at T3live.com told CNBC Asia's Squawk Box on Wednesday.

"We could have a little bit of an iCar. Apple is in entertainment, I don't think there's a lot of money in TV. Maybe they could do something and have an entertainment system in the car," he said.

(Read More: 'Zero chance' for Apple-Tesla merger: Tech analyst)

Redler said a potential collaboration between the two firms could inject a much-needed burst of innovative spark back into the tech giant, which many complain it has been lacking in recent times.

"There is a lot that they could do together. When great minds get together, great ideas happen and I'd love to see them do some kind of collaboration to get some 'innovativeness' back into Apple, which has turned into a very reliable, phenomenal product, that just isn't as flashy and new to the market as it was years ago," added Redler, who owns shares in Apple.

Inside view of a Tesla S 85 electric car while charging at a supercharging station on the A6 highway near Bad Rappenau, Germany.
Thomas Niedermueller | Getty Images
Inside view of a Tesla S 85 electric car while charging at a supercharging station on the A6 highway near Bad Rappenau, Germany.

Talk of Apple entering the auto market is not new, however. Last month Apple's 'iOS in the Car' software was leaked by mobile app developer Steven Troughton-Smith unveiling software specifically designed to link the iPhone to a car dashboard, according to media reports. The software would provide hands-free access to navigation, phone functions, messages and music through touch and voice control.

Tesla could have been meeting with Apple to discuss adding its name to a list of car manufacturers supporting the project, some analysts have speculated.

The manufacturer's Model S vehicle already features a large, tablet-like display, which is used to browse the web, and to navigate entertainment and sat-nav facilities, suggesting the potential some form of collaboration.

(Read More: A self-driving Tesla? Tantalizing but not practical)

Will Power, an analyst who covers Apple at R.W. Baird, told CNBC's Street Signs on Tuesday that a merger or acquisition of Tesla was unlikely but he thought the global auto market could "really move the needle" for Apple.

"I think what they're focused on right now is trying to get themselves more deeply embedded into the car and I don't think that necessarily requires actually making an acquisition," he said.

(Read More: This is how bad it could get for Apple stock)

According to T3live.com's Redler, a potential 'iCar' product is further out on the horizon, however, and Apple now needs a more immediate fresh innovative product to drive earnings forward, such as a wearable device like an iWatch.

"I still think there is growth there. Perhaps if they continue a buyback and they come out with new flashy things to let the media talk about, and you could see their stock at above $600-640," he added, referring to a 17 percent gain on Tuesday's closing price on the Nasdaq of $545.99.

(Read More: The big bet that Tesla's upside is capped)

One of Apple's key competitors Google has been using its Android operating system to develop partnerships with Honda, Hyundai and Vauxhaull, according to media reports.

Shares in Tesla Motors, surged 3 percent on Tuesday following rumors of the acquisition and ahead of fourth-quarter and 2013 results to be released Wednesday.

Meanwhile, Apple stock climbed 1.3 percent to a high of $551 before falling back to $545.99 by the end of the trading day.

Apple is also looking into medical technology in a bid to expand the business away from the technology market.

By CNBC's Katie Holliday: Follow her on Twitter @hollidaykatie

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