Is Apple Car a Threat to Tesla?
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In this video I take a deeper look at the rumored Apple Car and if it poses a threat to Tesla.
Is Apple serious about making a car?
Apple has invested in Project Titan, their electric car and autonomous driving project which started in late 2014.
In mid-2016, they put Bob Mansfield in charge.
In 2018 they hired Doug Field, who previously oversaw the Model 3 program at Tesla.
In early-mid 2019 Apple hired two Engineering VPs from Tesla.
In 2019, Apple acquired Drive.ai, a startup focusing on autonomous driving.
Why would Apple want to make a car?
Supposedly it was one of Steve Job’s dream to make a car
Apple and Google don’t want to be kicked out of the car.
They know cars are going autonomous, and whoever controls the car experience can direct the attention of passengers in the vehicles, which is a huge market opportunity.
What are Apple’s advantages in making a car?
Cash
Long-term vision
Execution
Connect with iOS and full Apple ecosystem
Brand/reputation
What are the disadvantages Apple has in making a car?
Lack of experience with complex manufacturing
Risk of spectacular failure
Cars are low margin, ultra competitive
Key value add is autonomous driving software
But don’t have the best AI engineers
Who wins if Apple and Tesla go head to head in the auto industry?
Tesla clearly has the advantage because Tesla is focused on electric cars and autonomous driving as their main life-and-death product. For Apple, it’s optional and doesn’t hold the same intensity as with Tesla.
Further, Tesla has already crossed the chasm and their products are now going mainstream.
They’re now able to enjoy economies of scale and make their projects even more compelling and affordable.
Here are some questions I answer in the video as well
Heidi Wang
Dave, can you comment on a future world where people don’t have to own a car?
Mark Binstadt, Jackson Wyoming
Video question
tfragia1
Hi Dave. I'm curious what you think about Amazon as a company? In my view, they have long been a disrupter like Tesla and still are. They've also had compelling services and have executed quite well over time. Unfortunately I didn't buy their stock back in 2000. I could have retired if I did at 200x growth. And now they're stock seems to be over valued, but I'm wondering if you think their growth prospects are still good? Thanks. Love your channel.
Steve Bim
Make a daily DaveShow that cover 1 big or interesting investing news and give your opinion . I believe lots of people would love to hear your views over CNBC, on the way to work or after get home. Great value for everyone and not much work for you.
Chung Kenneth
Thanks Dave for your insights! I have a question. I am new stock investing and I've spent lots of hours of studying the business and I decided to invest long term. When I decided to invest, the stock was valued at $450. My wife and I thought, let's just wait until it drops a little but since the price was rising for some time. But the value has been skyrocketed and we kept saying let's just wait a bit... the price must come down a little bit, right? and the stock is valued at $880 as I am writing this post after trade hours. I feel so bad for the missed opportunities! Every time I want to invest, I keep thinking, the price must come down... I do believe in the company so I should invest. But I just don't know what I should do. Can you give me some guide? Thanks!
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Disclaimer: All content on this channel is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of information on this channel. Author is long TSLA at time of original video publish date.
Tags: Tesla, Elon Musk, Model 3, Model Y, Cybertruck, Investing, China, TSLA Shorts
