Bullish Tesla hedge fund manager takes pot shots at Apple’s project Titan (video)

“With all the management turmoil we’d be surprised if they could pull it off that quickly” — Cathie Wood

From CNBC’s “Cathie Wood: Apple should’ve bought Tesla, but ‘we’re happy they didn’t’” posted Wednesday:

Ark Invest founder and CEO Cathie Wood joins ‘Squawk Box’ to discuss Apple’s autonomous electric vehicle prospects and Tesla CEO Elon Musk.

My take: Is it standard business practice for a money manager to refer to the CEO of a company whose stock she’s promoting by his first name?

11 Comments

  1. David Emery said:
    “Journalistic Standards? We don’t need no steenkin’ Journalistic Standards!”

    6
    November 24, 2021
  2. Robert Paul Leitao said:
    This reminds me of an old quote from Michael Dell about Apple. Remember? I’ll share a quote from Tim Cook circa 2016: “Don’t bet against us.” It’s relevant now and will be relevant in 2025.

    2
    November 24, 2021
    • David Emery said:
      With the split of Dell, arguably Michael Dell is finally applying his advice to his own company.

      2
      November 24, 2021
  3. John Konopka said:
    Funny, debating the effect of a car which may or may not appear in three or four years.

    3
    November 24, 2021
  4. Bart Yee said:
    Gee, the Tesla Model 3, essentially the cornerstone of Tesla’s recent success, was announced in 2008 by Musk. In 2013, their design chief described it as a BMW 3-Series, Mercedes C-class type sedan. In 2015 it was revealed most Tesla engineers were working on the model 3 design. Production was slated for 2016 but deliveries were delayed while prototypes and crash testing were produced. True volume production did not start till early 2018.

    All of this work almost bled Tesla dry to the verge of bankruptcy, Musk famously tried to offer Tesla to Apple, and Tesla stock cratered. No doubt, Tesla pioneered the volume production of electric vehicle parts, especially batteries, and should be commended for legitimizing EVs.

    But in 2021-22 and to 2025, the EV landscape is now quite different, infrastructure for production, parts, chassis developments, batteries, and the care and charging of EVs is practical if not plentiful, and building out as we speak. And of course, Apple’s manufacturing partner Foxconn now has a US factory site which will support 2 (Lordstown and Fisher) small volume makers while quickly learning vehicle production techniques. It will also have significant excess production capacity at the Lordstown site, as well as maybe in a certain Wisconsin or as yet I chosen alternate site. Perhaps there will be “some” interest by states to attract a new Apple-Foxconn vehicle or battery production site to their locales?

    3
    November 24, 2021
    • Bart Yee said:
      If Apple is going to enter the EV market, of course they will build a few hundred prototypes and test the heck out of them for everything, including potential autonomous operation. As suppliers and subcontractor contracts are signed, robot production in place, and parts supplies are assured, Apple will be ready to pilot production – say 500-1000/month for 6 months, then ramp up from there.

      As prototypes and Apple vehicles and capabilities become known, interest and demand will soar regardless of price. Like Tesla, there will be major demand for reservations and preordering so it will be very interesting to see how Apple will handle that. IMO, Demand will outstrip supply for probably 2 years at least in the US market alone.

      2
      November 24, 2021
      • Bart Yee said:
        So I think it’s quite doable for Apple to come into the EV market if it’s ready by 2025 as a “small” maker entry, especially as chip supply issues are fully resolved by then (even if Apple has to build ALL the requisite chips themselves to guarantee it) and charging / repair / servicing infrastructure is completed.

        But as usual, Apple would command outsized “mind space” and media scrutiny as production speculation explodes. It’s quite possible for Apple to literally conservatively create a $15B+ (300K units x $50K price) vehicle hardware revenue stream within 2 years of introduction along with adding significant Services revenue for Apple CarPlay subscriptions that bundle with ownership. If demand stays robust, that could easily double to $30B within 2-3 years.

        4
        November 24, 2021
  5. Ken Cheng said:
    Apparently, Cathie is part of the Tesla team. Strange that she wouldn’t see how Tesla has basically aped Apple’s vertical strategy. Given how many Apple execs have been poached over the years, it’s not really a surprise that Tesla has seen the importance of controlling the supply chain.

    2
    November 24, 2021
  6. Kenny Kruger said:
    Oh ya, Good ol’ Cathie Wood… She ran our (company I work for) stock up last winter then it collapsed when she announced she bailed like 3 months later. (PSTG). Its fine though, we have real growth and valuation as shown in Yesterday’s ER. *Would* be at 40 if she were still in it (Pun intended).
    Happy Thanksgiving to those who celebrate it!

    2
    November 24, 2021
  7. Jerry Doyle said:
    Ms. Wood denotes that Apple has had “a lot of management turnover (Apple’s Titan Project) in the last few years.” Is Ms. Wood oblivious to management turnover at Tesla in the last few years?

    The emphasis by Ms. Wood, the media and press is all on “autonomous vehicle.” That is the goal for every competitive EV manufacturer, including Apple. The primary goal for Apple, I believe, is to enter the competitive EV market with a premium Level 4 offering for car buyers. Am I the only one who “sees” that fact?

    Apple wants in the EV market race! Apple’s autonomous vehicle will follow logically at the appropriate period after Apple enters the EV market space. It’s not autonomous first for Apple. It’s coming to market with a premium Level 4 EV offering.

    Apple wants in the race. Apple’s autonomous offering will follow as a sweet fruition of an EV crown! So, don’t get hung up on Apple being first with an autonomous vehicle.

    Ride sharing isn’t where the profits lie. They lie with folk like me willing to pay for a premium build EV car and willing to pay for all the subscription services that come with owning that premium build EV car. We are owners! Ride sharers are renters who are looking for a public transit bargain. That’s fine and there is a need to meet that demand for ride sharing, but the profits lie with “owners.”

    3
    November 25, 2021

Leave a Reply