Is Apple Car a Threat to Tesla? (Ep. 34)
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?
Connect with iOS and full Apple ecosystem
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.