Impressive but a minor side note: it was intraday price and not the closing price. It topped $182.856 Monday afternoon, but closed below the milestone.
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Apple Briefly Becomes World's First $3 Trillion Company
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My point was accelerating optimism, rather than accelerated optimism. Accelerated suggests that people got too optimistic too early, which isn't that big a deal. What I'm trying to describe is a situation where there is unbounded optimism-- it just continues to grow and feed on itself. It doesn't seem tied to any reasonable model that I can detect-- it's mostly driven by a cult of personality.
Parallels with Jobs? Maybe. I guess it comes down to what characteristics you choose to compare. TSLA now and AAPL then don't really compare though. APPL had a market cap of $2.3B when Jobs took over, not the $1.2T TSLA does today. Tesla is valued at over 500 times what Apple was when Jobs took the helm.
The value today suggest the market thinks there's going to be a $20T car company within some reasonable investment timeline. I just don't see it happening. They have a head start on electric drives, but they're still catching up on the challenges of mass producing automobiles and by the time this all settles out, they're not going to be the only player in the market. Tesla's current market cap right now is pretty close to the sum of all its competitors (GM: $88B, Ford: $87B, Toyota: $250B, Daimler: $80B, BMW: $60B, VW: $125B, Volvo: $60B, etc...), even if they kill off all their competition I don't see how they then grow the profits of that consolodated auto industry by a factor of 15 or 20.
But I don't have a dog in that fight. It's too untethered from anything I can understand, so I'm just watching what happens with great curiosity.
It's relevant because Apple wouldn't be in the position it's in today if it weren't for Jobs returning to Apple.
It can be a positive.
As a company, you have to have a healthy margin on top of covering your cost in order to expand and do other things. Let's look at Apple Silicon. That doesn't happen overnight, and it took a lot of money and time from Apple's decision in making the A4. If Apple were just scrapping by with thin margins, they won't be able to do that. We can see other companies' attempt at designing their own silicon are not going anywhere (Samsung, Microsoft, Xiaomi, etc).
The negative is, for such big company, you will be inadvertently drawing in people who want a piece of the pie but shares none of your values. Along Tim Cook's tenure, we already saw few mis-hires. Retail and support are the ones that I feel Apple is getting inconsistent. The engineering team were not perfect either (using display cable that is too short). This shows that there are people inside Apple who are more interested in cutting corners.
Thanks for clarifying.
Yet you do forget Tesla facing production issues - during pandemic chip shortages and yet STILL beating analysts expectations while the competition: Rivian, Lucid and Fisker (in the USA) still have yet to ship even 5K models (I think Rivian has or close if you include employee deliveries BUT they've halted production on ALL models - even those still in prototype phase so no development.
You also forget Tesla is the only electric car manufacture shipping almost globally, not even VW, XPev, Nio, and others come close. I see only these three being able to viably compete globally with Tesla.
GM, Ford, etc have yet to even ramp up production beyond 1 vehicle. Tesla has 4 shipping units, 2 in development and still toying with an kids ATV and a shipping electric truck.
how many of these competitors have self driving or black boxes that holds all kinds of data including how much occupants weigh? (Nio and XPev have self driving single tier, Tesla's have 2) how many of blackboxes - non other than Tesla only.
how many competitors are improving - R&D and actually working in production to improve product component production times or assembly or new production methods to vastly reduce production times or quality? None! Ford may come close but last weeks CEO interview seems to have him guessing.
The traditional fossil fuel competition still has to retro-fit all their manufacturing to do electric vehicle production. Sure in 5yrs+ we'll have more options and competition for electric cars. Tesla literary has achieved what car TV shows have shown us from Knight Rider to Automan! I'll PM you on this as not to further derail this thread.
Good talk!
Yep, Tesla has an exciting story and great tech on the drivetrain, but I come back to the question of how they can grow beyond todays combined automotive market. If every car sold today was replaced with a Tesla equivalent, their market cap would still be close to what it is now. They‘ve got three ways to grow to the size they’re valued at: sell more units, but the market is pretty saturated already. Sell at higher margin, but the market is already pretty well segmented and it will be hard to get people to pay 10 times more for their cars.
The only other way I can think of is to diversify, but diversify into what? Semi trucks? I'm pretty sure that's small compared to passenger vehicles. Kids ATVs isn't big business.
My hesitation isn't with what Tesla can do, it's whether Tesla can scale to the size they're valued at. It just feels like people get excited by Tesla, and then can't put a rational number to their excitement. Whatever they believe it can do today, they convince themselves it'll do twice that tomorrow.
I remember the days of the MacWorld events, monthly MUG meetings, Mac evangelism and the idea that the right computer technology could maybe really change the world for the better.
But maybe that was all just post hippie era idealistic nonsense touted by SJ as a sales gimmick.
We’ve got mega sales and big, big Apple bucks nowadays To feel proud about.
Apple is technically the richest company in the world!
Now all Apple users can sleep better at night.
But maybe that was all just post hippie era idealistic nonsense touted by SJ as a sales gimmick.
We’ve got mega sales and big, big Apple bucks nowadays To feel proud about.
Apple is technically the richest company in the world!
Now all Apple users can sleep better at night.
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how much of this has to do with inflation and USA printing money like crazy devaluing the dollar in the first place?
No one said Apple will face financial ruin. People said Apple will face product quality ruin. Like butterfly keyboard and and buggy MacOS.
Financially, I never heard any one say use Facebook products its the best but the company currently worth near $1T so their investors are very happy.
It’s because the market went bonkers, not because of Tim or anything. A company can be overvalued or undervalued, the market doesn’t make a company good or bad.
It’s called speculation. (And a lot of market speculators will get hurt badly, one day or another)
It’s called speculation. (And a lot of market speculators will get hurt badly, one day or another)
I’m pretty sure “apple is doomed” meme and it’s variants refers to financial ruin.
I can understand that from a stockholder point of view, much less as a customer…
Steve was brilliant at one thing for certain- choosing the right people for the right job
with Tim he hit a home run for the ages , say what you like about mr cook but he’s a VERY safe pair of hands
with Tim he hit a home run for the ages , say what you like about mr cook but he’s a VERY safe pair of hands
Buy instead water and food, coz the us economy will collapse soon, and will impact everyone’s life
Most of the money come from myself!
But they still aren´t able to make a periskop zoom camera in a phone or a usb c.
The most ridiculous company in the world. NOKIA was on the same trip......
But they still aren´t able to make a periskop zoom camera in a phone or a usb c.
The most ridiculous company in the world. NOKIA was on the same trip......
When's the 50th anniversary of the Apple II? (I'm bad at dates.) Anyway, it's great being a $3 trillion company, but it's growing exponentially again. Apple Silicon will go wild for another ten years. It seems that Apple could be building a store on Mars in a while.
You never know. Everybody thought they were too late to buy Apple stocks when it reached a $1 trillion market cap. It is hard to know when it will stop or even revert.