Gene Munster: ‘It’s going to be Apple vs. Tesla’ (video)

29 Comments

  1. Gregg Thurman said:
    Survivability in a EV world is going to depend on Brand Name and scale ability. Among the EV startups (I don’t count Tesla because they have brand and are developing scale rapidly) I don’t see any serious contenders because they all lack brand and scalability. They will be consumed by those that have financial resources, brand and scalability.

    That’s the way it went with autos, TVs, cellphones, computers, etc. that’s the way it will go in the future.

    Apple certainly has brand to spare, and the financial resources to achieve scaleability.

    2
    February 27, 2021
  2. Jerry Doyle said:
    I am very high on Tesla, so my bias may be clouding my vision. Tesla definitely will be a major player. Because of its vast resources, brand name and battery technology Apple will be a definite competitor. That’s all I can say at this point about Apple.

    I do think it is myopic to discount very strong automobile brands such as MB, BMW, Porche, Audi, Lexus (Toyota) and even Gm/Ford because they have consumer loyalists the same as Apple and Tesla. There are many consumers of these traditional car brands that never will leave those brands. Additionally, these consumers do not follow EVs as folk on this blog, so consequently they are not cognizant fully of the lead in battery technology that Tesla and Apple may have over the traditional car companies. One would be a fool to think MB, BMW, Audi and Toyota would just fade away.

    1
    February 27, 2021
  3. bas flik said:
    i agree tesla is a ponzi scheme. only look at the value of issued shares in relation to the real economy of the company. sane irrational emotional forces behind gamestop are behind Tesla. Investing without knowing how to use a calculator.

    2
    February 27, 2021
    • Kirk DeBernardi said:
      @ bas flik —

      “sane irrational emotional forces behind gamestop are behind Tesla. Investing without knowing how to use a calculator.”

      A healthy amount of investing is performed without knowing.

      One could have applied this statement to Amazon at some point in their existence too. Among others in business history, relative for their time period — calculator or not.

      It has happened before, where the hopeful vision gets ahead of the promised execution.

      Unbelievable valuations achieving Ponzi-scheme level accusations may be more due to pure faith in an achievable vision with the believable eureka payoff following well behind.

      Gregg Thurman from this site I believe calls it “ISQ” (Investor Sentiment Quotient — hope I’m correct, Gregg).

      The question becomes, can the weight of Investor Sentiment become justified.

      2
      February 28, 2021
      • Kirk DeBernardi said:
        As per Tesla — one little-discussed element of any EV competitors viability is that of the charging network.

        I’ll say it here; the competition will trip over each other for at least five years to achieve any scaled, homogenous, dependable and well-maintained charging infrastructure — IF they ever do.

        An EV Achilles heal if there ever was one.

        1
        February 28, 2021
      • Gregg Thurman said:
        Gregg Thurman from this site I believe calls it “ISQ” (Investor Sentiment Quotient — hope I’m correct, Gregg).

        Investor Sentiment Multiple.

        An equities price is a reflection of consensus Investor Sentiment. Many times that Sentiment is shaped by emotions not connected to solid fundamental analysis. We saw that a few weeks ago with Gamespot and currently with AAPL.

        ISM (mostly known as PE) is the product of Investor Sentiment. ISM is neither good, nor bad, it is what it is.

        0
        March 1, 2021
        • Kirk DeBernardi said:
          @ Gregg Thurman —

          Thanks for that clarification, Gregg. I kinda thought I was a bit off.

          To your point, if it’s merely a sentiment, it’s inherently a matter of “good” if your a believer and “bad” if your not.

          I’ll bet Tesla’s sentiment has legs…and for quite some time.

          You’ve expressed a strong interest in getting a Tesla on Apple 3.0. Are you close to getting yours?

          😉

          0
          March 1, 2021
  4. Jerry Doyle said:
    Follow-up: The established traditional car companies can transition to EVs and they will make that transition successfully. They will adapt. They do have the resources, the personnel and expertise to do so. Additionally, individuals who believe that established traditional car manufacturers will not survive the transition to EVs I say to you, that the federal governments in those respective nations never will allow such to happen from a national security perspective.

    0
    February 27, 2021
  5. Fred Stein said:
    I just read the WSJ’s article about VW’s ID.4, their attempt to compete with Tesla. Not even close. The writer, Dan Neil, says, and substantiates, that the ID.4 was rushed to market.

    That last point, is key. Legacy automakers have to re-think the business they’re in. There are no quick fixes, no acquisition to catch up. Tim Cook won’t think that way.

    7
    February 27, 2021
  6. T R said:
    The Hyundai Ioniq 5 (and with the same platform the Kia CV, to be revealed in March) looks promising: 800v 350Kw charging from 10 percent to 80 percent in just 18 minutes. Nice interior. AWD: 0-60 5.2s, 232 bhp (235 PS/173 kW) and 605 N·m (446 lb·ft/61.7 kgm), 72.6-kWh battery. Real world range will be interesting. Pricing not announced. I don’t mind the VW Golf GTI styling, except for the crease through the door panels.

    0
    February 27, 2021
  7. Dan Pallotta said:
    Remember when everyone used to tout the superior specs of android versus iPhone? They still do. But it was never about the specs. It was about the soul. And Tesla has a soul that the other car companies simply don’t. It lives in the product, the simplicity, the dealer network, the customer service, the charging stations everywhere, The radical designs. On every level, they just seem like Apple to me. Young Apple, but Apple nonetheless.

    6
    February 27, 2021
    • David Emery said:
      I would personally distinguish between “Tesla the car company” and “Tesla the stock.” The latter has been characterized as a Ponzi scheme, and I think there’s some truth to that. But my friends who own Teslas have enjoyed the experience, and that’s what counts. I think Tesla has both brand cachet and technology, the question is whether Musk and Wall St can keep the financial side from sinking the auto side. (Also see my previous post on car sales experience as a big part of the -problem-, something Tesla is avoiding.)

      2
      February 27, 2021
      • Jerry Doyle said:
        @David Emery: The proof of Tesla’s performance, viability and consumer acceptance lies in its consumers’ accolades of the company’s cars. When I listen to Tesla owners relative to their personal experience with their Tesla car and to third independent professional parties (such as Sandy Munro), therein for me lies the truth. Tesla is real! I suspect those who denigrate Tesla do not own the vehicles or perhaps never drove one. As far as stock price correlation (P/E) we all know of legitimate (and viable companies) who P/E ratios are out of sync.

        0
        February 28, 2021
  8. Bart Yee said:
    As crazy as it may sound, maybe the introduction of a fully realized AppleCar ™ EV would, as it did for the IPad, Watch, and AirPods, “legitimize” or validate the EV market. Yes, I fully realize Tesla has dedicated followers, all automakers are rushing to create their own platforms, and all have some type of head start on areas of manufacturing.

    Yet, if and when Apple enters the market, will consumers view it as EVs coming of age (literally turning 21 by 2024 in Tesla years)? Apple could do the same as it ever has, provide a compelling option that hopefully would radiate and garner trust, popularity, and usability. Apple IMO does not intend to overwhelm the EV market, BUT does intend to offer users and fans perhaps unmatched integration of an EV platform with Apple’s ecosystem and perhaps technological and user interface innovations. Few if any automakers, EV or not, have truly or desired to integrate Apple Car Play or other options into their vehicles any further than necessary.

    1
    February 27, 2021
    • Bart Yee said:
      As it has always been, if Apple wants to enter a market, it will fully embrace a unique path and write its own narrative. Apple will enter, learn, grow and eventually become an important player in whatever part of that market they choose. It must make business sense but also have a societal, environmental and humanistic impact. A higher purpose.

      2
      February 27, 2021
  9. Horace Dediu said:
    The IPhone is not a phone, the Mac is not for computation, the Apple Watch is not a watch, the iPad is not a tablet. The Tesla car is a car. So is the VW.

    4
    February 28, 2021
    • Jerry Doyle said:
      @Horace Dediu: Your response above is descriptive, but I do take a degree of exception to your thinking that limits the Tesla car to no less than a car, per se.

      A car, intrinsically, is the car that golfer Tiger Woods was driving when he supposedly fell asleep at the wheel. The car proceeded to go directly off the driven path flipping upside down resulting in significant lower body extremity damage to the professional golfer, perhaps ending his career. If Tiger Woods had been in a Tesla, it is likely the accident never would have happened. At the moment the Tesla is more than a car on wheels. It’s evolution isn’t complete, but it’s evolution continues.

      As the Tesla continues to evolve in the coming years it will evolve farther and farther away from a high tech car into a computer on wheels. We do not know what Tesla executives have in mind as this vehicle on wheels continues its evolution. What we do know is Tesla is out front and positioned well to remain out front for a period.

      0
      February 28, 2021

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