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Apple EV - Should Musky/Tesla be worried?

Peteski

Active Member
Oct 2, 2017
3,539
2,297
UK, Milton Keynes
I very much doubt Tesla should be overly worried about Apple producing an EV sometime mid decade. ICE manufacturers are the ones who should be getting nervous.

I think you missed the boat by about a year for buying into Tesla shares. But if you already bought some back in the day, now is probably a great time to reap the profits!
 

Gatsojon

Member
Aug 4, 2019
640
624
Manchester UK
I don’t think Elon will be worried. His stated ambition is to move the world into a more sustainable position so that will mean lots of companies getting involved.

As for the Tesla stock price, who really knows the answer to that. If I’d have bought stock instead of my Model 3P, I could have four now and it was reckoned to be overpriced then.
 
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Durzel

Active Member
Jul 17, 2019
3,447
2,405
Bath, UK
Apple certainly have the money to do it, and are probably looking for expansion into adjacent markets. With cars getting more and more “online”, and CarPlay etc being a thing, you can see how an end-to-end ecosystem would be appealing to them.

That being said something about this doesn’t add up in my head, and I can’t quite put my finger on it. Apple aren’t infallible, so there’s a good chance it would be a damp squib too.
 
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phil4

Member
Sep 8, 2020
319
182
UK
In the past when Apple moved into a new market, they did so by offering something both very different, and much better than what had gone before. In essence it was their USP... and everyone needs a USP.

Yes, they also removed some of the complexity of use, gave it a typical apple design, and charge a lot more for it... but what you go was typically an Apple product.

I'm not entirely sure how they can do that with a car as it stands. Perhaps if they're first/best to market with Self drive, or if they have come up with some battery or motor tech that makes them markedly longer range... but if they simply took a current EV and made it a bit more posh, and simplified the UI... they'd sell, but not in great numbers.
 
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Jason71

Active Member
May 8, 2019
2,960
2,884
Shropshire
Apples entry into a market is often beneficial for competitors since it expands the market. There were tablets before the ipad and smartphones before the iphone and Samsung sells a lot more of both since Apples debut.
EV's make up a tiny % of the market so there is room for expansion for both companies. It may undercut Tesla's status as the cool kids on the block but I think they will be fine. I agree that it is the ICE manufacturers who are likely to be the Next Nokias in this situation.
And of course one thing Apple cannot magic up over night is a world wide network of chargers. So having passed up on buying Tesla maybe they will swallow their pride and do a deal for supercharger access.....
Finally they may bring out a car in 2024 but we all know they will hold it down to about 50 miles of range so that they can then double it every year for the following three years and claim its the best iCar Apple have ever made. Never buy a first gen Apple product!
 
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Jeeves

Member
Feb 12, 2020
506
285
UK
To answer the original question: no.

Love them or hate them (Apple does seem to have a polarising effect on opinion), Apple have a strong track record of being a late entrant to an established, early, growing market and dominating sales at the expensive end with quality products where combination of software and dedicated hardware can make a real difference in expectation for a product category. They rarely become the dominant supplier in terms of numbers, but they do in terms of profit. They understand luxury buyers, and cars are luxury purchases for many. Apple have the odd flop, and they lost their way in the run up to Jobs leaving, but they didn’t get to being one of the biggest companies in the world and stay there by fluke.

Entering into the car market would represent a major shift up in terms of unit selling price for them, and it is unlikely that its routes to market for gadgets would work without significant adaptation. Their supply chain would look very different too, and take a while to establish.

If they do decide to enter into the market, they might be betting the farm on it in terms of use of their cash hoard, and I wonder would they elect to do it in partnership with an established player to overcome the barriers to entry and reduce risk. If they do elect to enter the market, I for one would expect them to be successful because it would be based on their core values.

Back to the question, Tesla would undoubtedly experience competition at the high end from Apple if they launched a car, but IMO that would be healthy for Tesla. I think Tesla’s real, short-term concern is more likely to be about the established car makers who are now being compelled down the electric drivetrain route by forthcoming legislation. They (and Apple) are very good at doing some of the things that Tesla are bad at in my experience: build, quality control and service.
 

pgkevet

Active Member
Jul 1, 2019
1,423
1,215
mid wales
Apple pricing model isn't going to work for cars. And their software is crap - they can't even develop a decent alarm clock for IOS.

And it will have a glued in battery that's only good for three years and can only be driven on apple roads so long as you buy a transit token from their store first. But people will queue to buy the newest model every year. Samsung motors will have more functionality but for me a motorola motor will do just fine
 

GRiLLA

Member
Jul 5, 2020
829
785
UK
I wonder why? I don't really see Apple as a company that set lofty goals to better the world, and while they have an unthinkable amount of capital they don't really get into the process of actual manufacturing. Will they buy out an existing ICE company with suitable facilities and a proven record? Why would they choose to take the risk, it's not something they have done before. Will it really improve their share price to be embarking in what's clearly going to be difficult.

I guess they could convince themselves that after a phone, a car is one of he next most universal worldwide high value purchases.
 

pgkevet

Active Member
Jul 1, 2019
1,423
1,215
mid wales
Most of the Apple hate is just from Android users who refuse to accept they bought the worse product.
It's not apple hate - its hatred of any overpriced stuff sold as fashionable. Just as I'd only wear logo-ed clothing if they paid me to advertise it. And my cheap jeans don't run colour in the wet and I don't care about kneeling in the mud with them on. But then living in wales one has to be practical.
 

phil4

Member
Sep 8, 2020
319
182
UK
I wonder why? I don't really see Apple as a company that set lofty goals to better the world, and while they have an unthinkable amount of capital they don't really get into the process of actual manufacturing. Will they buy out an existing ICE company with suitable facilities and a proven record? Why would they choose to take the risk, it's not something they have done before. Will it really improve their share price to be embarking in what's clearly going to be difficult.

I guess they could convince themselves that after a phone, a car is one of he next most universal worldwide high value purchases.

This is one of the puzzling ones. You'd have thought for example that by now we'd have had an Apple TV set, as opposed to just a box that plugs in, as closer to one of their core markets, and and area for making their product easier and more tied in. But no.

If I had to guess it's really not about the car. Indeed they probably won't even make a car as such (as suggested earlier, if they do it'll likely be done by/in partnership with a more established firm)... I suspect instead it'll be something like FSD that they produce that makes it revoluationary.
 

Mr H

Active Member
Jan 6, 2020
1,810
1,901
Manchester
It's not apple hate - its hatred of any overpriced stuff sold as fashionable. Just as I'd only wear logo-ed clothing if they paid me to advertise it. And my cheap jeans don't run colour in the wet and I don't care about kneeling in the mud with them on. But then living in wales one has to be practical.
I suppose that standing on a wheelie bin in the pouring rain, trying to get a phone signal would play havoc with a pair of Levi's...
 

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