Gene Munster: ‘Apple is the biggest competitive risk to Tesla’ (video)

“Even though Apple hasn’t done a thing in autos beyond R&D and testing for the last eight years, they should be taken seriously.”

From “TSLA Stock, Near-Term Caution, Long-Term Optimism” posted Monday to Loup Ventures subscribers:

Muster ticks off three positives and a negative for Tesla. The negative (Apple) enters at the 4 minute mark.

My take: Near term, according Munster, it almost doesn’t matter to Tesla investors if Apple never builds a car.

2 Comments

  1. Jerry Doyle said:
    My take away from viewing this video clip and listening to Gene Munster is his belief that Apple definitely has ambitions to produce a car. Gene talks about how the car market is a “massive” market for growing Apple’s revenues. And Gene talks about this massive car market in isolation from the attendant massive markets of Apple Care Protection, Apple Car Insurance and Apple Car Financing that adds 3 additional profitable revenue streams with the production of an Apple Car. Gene denotes that where the smartphone market is a $500B market with Apple doing about $180B, he denotes that the car market is a 2T market. In summary, it just seems unlikely that Apple wouldn’t produce a car. Gene mentions that it would not be just an EV Car, but literally a “computer on wheels.”

    My take: It’s not whether Apple is going to produce a car, it is when. Concomitantly, I also believe once the car is produce that Apple will begin laying the groundwork for adding those 3 additional revenue streams I denoted above.

    0
    January 12, 2021
  2. John Konopka said:
    You should here Horace talk about the Apple car on his Critical Path podcast.

    If I may poorly summarize a few of his points.

    2024 may be a good time to get started. This won’t be the ultimate gadget they want to make, but it gets the machinery going.

    People spend a huge amount of time in cars. Apple can maybe access this time somehow.

    There may be ways to change travel to make it completely different and to monetize it such that the low margins of making the car itself get absorbed.

    In a sense the car market hasn’t changed since the beginning. You get in the vehicle and steer it where you choose to go. What if you got in the car and gave it three destinations and the car planned the route for you so that it was more efficient? Perhaps some other ways for the car to be involved in route planning. This might be a service you pay for.

    1
    January 12, 2021

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