Mark Gurman: What every Tesla investor should know about Apple Car (video)

One of the biggest mistakes of Tim Cook's tenure at Apple, he says, was not taking that meeting with Elon Musk.

From Dave Lee on Investing, posted Friday on YouTube:

Timestamps:

  • 00:00 - Introduction
  • 00:44 - Does Mark Gurman own a Tesla?
  • 03:28 - Overview of Apple Car history
  • 08:30 - Challenges Apple Car development has faced
  • 15:29 - Does Apple really want to make a car?
  • 19:10 - Why Apple is waiting to produce a mass market car
  • 21:00 - Possibility of Apple acquiring a car company
  • 27:20 - Apple CarPlay
  • 37:10 - Apple ambitions with CarPlay
  • 40:00 - CarPlay 2.0 vs CarPlay 3.0
  • 43:40 - Will Apple add autonomous driving to CarPlay 4.0?
  • 49:05 - Apple’s reluctance to get into car hardware business
  • 52:30 - State of Apple’s autonomous driving efforts
  • 55:15 - Is Apple still innovating? What big new areas are they targeting?
  • 1:04:07 - Should Apple buy Peloton?

My take: A jam-packed hour. Gurman, who drives a Model 3, doesn't see an Apple Car coming for  5 to 7 years, if ever. Meanwhile, he says, Apple is following a clever dual track strategy where CarPlay becomes the operating system for the rest of the industry.

7 Comments

  1. Roger Schutte said:
    Mark Gurman’s apartment looks exactly like I’d have imagined it would.

    2
    June 20, 2022
  2. Roger Schutte said:
    And this is also available as a podcast if you prefer to listen to interviews vs. watching them. 😉

    search for: Dave Lee On Investing

    1
    June 20, 2022
  3. David Emery said:
    Elon Musk and Tim Cook are opposites. Musk might be brilliant, but he’s undisciplined and seems to think the rules don’t apply to him. Cook is highly disciplined and works within the system to achieve (spectacular) results. If Musk got anywhere near Apple, I’d sell my stock.

    13
    June 20, 2022
  4. Discipline is crucial, David.
    Unlike Mr. Gurman, I remain steadfast in my belief that Apple will eventually put their marque on millions of autonomous EVs. My reasons:
    1. Apple test platforms have been on the roads of California, Michigan and Arizona for years. These states are more welcoming to nascent EVs.
    2. Apple continues to seek talent in autonomous transport development.
    3. Patents Apple owns and continues to apply for point in this direction. I would not be surprised to find Apple licensing their inventions to other EV developers.
    4. Tied to my 3rd point, Apple’s battery technology, coupled with Apple silicon, is a key factor. Leveraging what they know about keeping mobile devices powered is important to their future.
    5. Autonomous EV development is very dependent on the ability of onboard processors, especially the AI/neural net components, to handle enormous amounts of data from LiDAR or related sensors. Apple’s M3 chip may reach the necessary level. I once heard Musk complain about this issue with Teslas.
    6. The car market is moving rapidly in the direction of SUVs or crossovers and away from sedans. Social responsibility deems the Apple car will probably not be an expensive 2-seater.
    7. Supply chain. This may actually be the biggest roadblock to an Apple’s iRide. Who in their right mind would release any large consumer product requiring so many tough to procure parts right now? It could be 3 years or more before supplies meet demand.

    9
    June 20, 2022
  5. Fred Stein said:
    Hi Thomas, I upvoted and strongly agree with points 1. through 6.

    Re 7., Apple’s superior supply chain management would be a competitive advantage, if and when they enter this market.
    1) Apple can simplify the design, especially electronics, to reduce complexity and contingencies that plaques the current automative ecosystem.
    2) Apple would attract the best supply chain talent in the industry.
    3) Apple could acquire specific assets in the supply chain at attractive cost, because the entire industry is full of redundancies.

    Still some raw materials for batteries may be a challenge.

    2
    June 20, 2022
  6. Fred, I’m certain Apple’s supply chain expertise leads them to be both wary of introducing a new product line and confident they will eventually be among the most reliable EV producers. So far as battery tech goes, they need to hire or partner with one of Tesla’s founders, JB Straubel. He’s a genius in several EV technologies, currently building one of largest battery recycling facilities ever conceived.
    Yesterday’s 6.0 earthquake in Taiwan must have them quite concerned, given the sensitivity of ASML and TSM chip making equipment. I did a little research this morning and found the epicenter was distant from most chipmaking plants in Taiwan.

    2
    June 20, 2022

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