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I have to think Apple and Tesla have been in serious contract negotiations about something and they are both trying to intimidate/bully each other now. First with Musk comments and now with all these Apple rumors. I mean Apple is not stupid enough to put this minivans out there in public if they are working on a brand new car. I think both companies would greatly benefit from each other. I can imagine a scenario where Apple acquires a portion of Tesla and Musk becomes a board member of Apple. Apple will acquire the ingenuity of Musk, something which Apple hasn't had since Steve Jobs and their battery technology, and Tesla could use Apples software and cash flow. Plus, SpaceX is Elons true love, he will need to devote more of his time and effort with them in the next 20-30 years, after all, I don't think he can oversee Tesla operations from Mars.
 
Surprised no one has posted this.
 

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Sounds to me like a 100% apple maps car. Make it unique so people recognize it and have them all over taking pictures to compete w Google.
 
Sounds to me like Apple is building the automobile to specifications just to have a car to test their secret software on.

Apple is not going to be making cars. Not enough profit margin in it.

I remember reading like in 2005-06 rumours about apple making a car so this is obviously not the first time they think about it.
 
I have to think Apple and Tesla have been in serious contract negotiations about something and they are both trying to intimidate/bully each other now. First with Musk comments and now with all these Apple rumors. I mean Apple is not stupid enough to put this minivans out there in public if they are working on a brand new car. I think both companies would greatly benefit from each other. I can imagine a scenario where Apple acquires a portion of Tesla and Musk becomes a board member of Apple. Apple will acquire the ingenuity of Musk, something which Apple hasn't had since Steve Jobs and their battery technology, and Tesla could use Apples software and cash flow. Plus, SpaceX is Elons true love, he will need to devote more of his time and effort with them in the next 20-30 years, after all, I don't think he can oversee Tesla operations from Mars.

I don't think Musk will ever sell, that's like saying Steve Jobs would had sold Apple. Never gonna happen, Tesla is his company, he build it. Also, I think it's obvious that Musk didn't play ball a year ago when Apple tried to buy them and now they are the google of cars to Apple.-
 
Think transportation, not car companies

Horace Dedieu does a great job explaining why Tesla isn't really disruptive, on his podcast Asymcar. It's still building cars the same way every other car company does. Super expensive factories using the same manufacturing processes as Toyota, Ford, Audi, and everyone else.

I think Uber and Lyft are on the right track. It's not just car companies who will be disrupted. It's transportation itself. In my mind things will look very different in 10-15-20 years. I see most people using their smartphone or watch to request a vehicle to pick them up. Maybe these will be self driving vehicles, maybe not. I really think the world will change. The whole idea of owning, maintaining, insuring a car that sits in the garage all night and sits in the parking lot at work all day just seems silly. Especially with new technologies coming out.

I don't think the existing car companies are going to make the switch. They will end up like Blockbuster video when Netflix ate their lunch, without even realizing it until too late. I think Apple already sees the same future. The trick will be if they can help us get there. I think they have a good a chance as any. Probably better than most.
 
financial growth

This makes sense from a financial growth sense (the incorrectly named "law of large numbers" problem). Given almost $75B in quarterly revenue, how is Apple going to find a vast enough business opportunity, percentage-wise, to budge the needle by a noticeable amount?

A few $Billion in watch sales is way too small a percentage of their current total revenue. There are no jewelry companies in the Fortune 100. So what's in the top 10 businesses, those with large multi-billion dollar opportunities? What's left among what the very biggest companies in the world do?

  • oil and gas
  • banking and financial services
  • healthcare
  • retailing, and
  • automobile manufacturing

Not oil and gas, given Apple's eco-friendly branding. But Apple is already dipping their toes in the next 3, very successfully with retailing, plus ApplePay for banking, plus HealthKit for healthcare. So automotive manufacturing is the next massive multi-Billion dollar business for Apple to explore.

And vehicles are more and more becoming computers on wheels (many auto models already contain well over 100 microprocessors). What few companies (with the money) have world-class software development chops for insanely complex systems?

Google and Apple. QED.

What's next? Aircraft? Insurance? Biotech?
 
I don't think this rumor is 100% true. What bugs me is the fact that, why they are leasing cars to modify it to an electric car? I supposed they have enough money to actually buy the car....unless their lease contract allows apple to modify the car up to the point to make an electro car.
 
Apple will return to the apple from the 1990s soon enough!!!!:confused:

The difference is that back in 1990 Apple had lots of products, yes, but they weren't good at any of them. Right now Apple sells iPhones, Macs and thats about it, soon they'll start selling Apple Watches but that's practically the same branch as iPhones and iPads and even Macs. They're still playing to its core, everything is connected and well done.
 
I don't think Musk will ever sell, that's like saying Steve Jobs would had sold Apple. Never gonna happen, Tesla is his company, he build it. Also, I think it's obvious that Musk didn't play ball a year ago when Apple tried to buy them and now they are the google of cars to Apple.-

Musk couldn't stop Apple from buying Tesla if Apple wanted to. Tesla is a public company and he only owns about 22% of it.

But, I don't think Apple should or would buy Tesla. Car companies are going to be disrupted in a big way, and Tesla right along with everyone else.
 
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Best comment in here. Automobile software systems, not entire cars.

Why about the part of the rumor that stated 1000 Apple employees were working on this project? Seems like a lot of engineers for just car software.
 
My God, kids.....

My take on all of these rumors is that Apple is designed a software package for cars, from navigation, fuel economy, playing music, etc....it is Carplay on steroids. Imagine a company that can put together a complete software package for any car mfg. to license. Does Ford want to constantly update its own software over and over and over again, depleting money from their designs? It would make sense to have a software company provide an entire 'car OS' that can be d/l into the EMS of any vehicle. It would incorporate all aspects of driving, lane changing, HUD, cameras, internet, wifi, LTE.....And this software would learn how you drive and adjust the cars accordingly. It will know that Steve loves to ramp up speed right away, while Susan merges into lanes suddenly and Jake, the teanager just wants to listen to music really really loud as he travels down main st. the car would know who is driving and automatically adjust seats, music, lights, mirrors, cameras, everything. And since your profile would be in the "Cloud" you could d/l your 'image' to any vehicle that is equipped with this OS. Imagine, regardless of what you car you enter, it will great you by name and have it all adjusted to just the way you like it.

My 2cents.
 
Why about the part of the rumor that stated 1000 Apple employees were working on this project? Seems like a lot of engineers for just car software.

And the guy supposedly overseeing this project is a mechanical engineer who works for Jony Ive (and worked for Ford before he came to Apple).
 
Great post and although worldwide things are different, Apple better be building a pickup truck if they plan on competing with the big boys in the U.S.

I can picture it now... The new electric Apple A-150...

Apple doesn't really need to rule the market though, they only need to become the size of a BMV or MERCEDES within 5-10 years.

They can play the long game. Cars are becoming increasingly less about mechanical engineering and more about electrical, systems and software engineering.

Musk's reaction makes more sense now.

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The automobile manufacturing business is one of the toughest around. Competition is tough, Government regulation is deep, margins are small, and other then Tesla most of the major automakers are 80-100+ year established businesses with long established dealer networks.

All I can say is good luck.

If they go for the mass market, sure; but I doubt Apple would compete with a low end Toyota at first. If Apple is able to make money right away and plays the long game, it can become the size of BMV or MERCEDES within 10 years.
 
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