Apple developing their own car?

[mspohr]

I just hope my Tesla never has to run MacOS 10.10 Yosemite.

I made a big mistake to "upgrade" to that release...flaky WiFi (still and again), weird interface, slow, loss of functionality. I wish it were easy to get back to 10.9

 

[Lump]

In the article, the author hypothesizes that 3x Tesla market cap would get a deal done, given necessary assurances that Apple would use it's resources to speed the revolution rather than muck it up.

My question to fellow shareholders. Given a $200 share price today, would you vote Aye to a $600 share price offer by Apple for your shares? My personal inclination right now is no, but I'm willing to allow that I could be persuaded. The challenge is being persuaded that the acquisition would enhance Tesla's progress towards affordable electric transportation, and I'm skeptical that an acquisition will help.

In my case that would be a twenty bagger in 4 years, holding out for more would be foolish. lots of folks around here participated in the IPO so their cash out would be "insane".

(not even considering the option trading that been very profitable so far).

 

[Skotty]

My thoughts.

I'd be very surprised if Apple is really working on or interested in getting into the electric car business. It just seems too big a leap.

There may be an apparent advantage to Apple partnering or buying Tesla in that Apple has the resources to potentially speed up the advancement of electric cars. However, Apple comes with way too much opinion baggage (good luck selling an Apple car to an Android fan), so I don't see this happening unless it's just some loose partnership.

If Apple is really working on it's own car, I think they would be potentially smart enough -- unlike other car companies -- to consider buying into the supercharger network.

And finally, I'd have to say this about an Apple car: it would probably have great iPod integration.

 

[igotzzoom]

Do you have any links to those news reports? I know he visited Apple over a year ago, but a recent visit would be a key piece to this puzzle.

http://appleinsider.com/articles/14...also-working-on-tech-to-predict-heart-attacks

 

[TEG]

http://appleinsider.com/articles/14...also-working-on-tech-to-predict-heart-attacks

(That article was from early 2014)

 

[palmer_md]

(That article was from early 2014)

and referring to a visit a year before the article.

 

[rolosrevenge]

The Onion nails it. Features Of The Apple Car

 

[the dude]

I liked the VW nils would be an excellent city car

 

[EVNow]

A123 sues Apple for taking away battery engineers in violation of non-compete clause.

Electric car battery maker sues Apple for stealing its employees | The Verge

A123 Systems claims that Apple has been "systematically hiring away [its] high-tech PhD and engineering employees," and that the iPhone maker is "developing a large-scale battery division" of its own — a claim that gives credence to reports that Apple is building its own electric cars.

 

[wallet.dat]

More info coming in. Tesla might have a few years head-start, but I do not believe they'll stay in that position against a company like Apple for very long.

Apple Wants to Start Producing Cars as Soon as 2020 - Bloomberg Business

(Bloomberg) -- Apple Inc., which has been working secretly on a car, is pushing its team to begin production of an electric vehicle as early as 2020, people with knowledge of the matter said.The timeframe -- automakers typically spend five to seven years developing a car -- underscores the project’s aggressive goals and could set the stage for a battle for customers with Tesla Motors Inc. and General Motors Co., both of which are targeting a 2017 release of an electric vehicle that can go more than 200 miles on a single charge and cost less than $40,000.


“That’s the inflection point -- the proving ground -- that brings on the electric age,” Steve LeVine, author of “The Powerhouse,” a book about the automotive battery industry, said on Bloomberg TV Thursday. “Now you have Apple coming in and this is critical mass. Was GM really going to be able to match Tesla? Apple can.”


Apple, which posted record profit of $18 billion during the past quarter, has $178 billion in cash with few avenues to spend it. The Cupertino, California-based company’s research and development costs were $6.04 billion in the past year, and Chief Executive Officer Tim Cook is facing increased pressure to return cash to shareholders. The CEO has been pushing the iPhone maker to enter new categories to further envelop users’ digital lives with Apple’s products and services.


Apple’s possible foray into cars follows a similar path it’s taken to break into other industries. The company wasn’t the first to make a digital-music player or smartphone, and only entered those markets once it had a product that redefined those categories.


Apple representatives declined to comment for this story.


Tesla’s success in creating a startup car company has shown that the traditional barriers of entry into the auto industry aren’t as difficult to overcome as originally thought, said one person, who asked not to be identified because the matter is private. At the same time, automakers have struggled to bring technical leaps to car development, something that Silicon Valley is also seeking to accomplish. For example, Google Inc. has invested in developing an autonomous vehicle since 2010.


Apple may decide to scrap its car effort or delay it if executives are unhappy with progress, as they’ve done before with other secret projects, the people said. The car team, which already has about 200 people, began ramping up hiring within the past couple of months as the company sought out experts in technologies for batteries and robotics, said one of the people.
Battery Lawsuit


An experienced automaker typically spends five to seven years developing a new vehicle before bringing it to market, according to Dennis Virag, president of Automotive Consulting Group.
“If you’re starting from scratch, you’re probably talking more like 10 years,” Virag said. “A car is a very complex technological machine.”


A lawsuit filed this month gives a window into Apple’s efforts to create a automotive team for the project. Apple began around June an “aggressive campaign to poach” employees from A123 Systems LLC, the Waltham, Massachusetts-based battery maker said in a lawsuit against Apple filed this month.


Apple hired five people from A123 and has tried to hire battery experts from LG Chem Ltd, Samsung Electronics Co., Panasonic Corp., Toshiba Corp. and Johnson Controls Inc., according to the lawsuit.
“Apple is currently developing a large-scale battery division to compete in the very same field as A123,” the battery maker said in a separate state-court filing.


The recent hiring effort at A123 began with Mujeeb Ijaz, a former Ford Motor Co. engineer, who founded A123’s Venture Technologies division, which focused on materials research, cell product development and advanced concepts. He began at Apple in June and began hiring direct reports from A123’s venture technologies division, which he had headed.


Tesla CEO Elon Musk told Bloomberg Businessweek this month that Apple was seeking to hire away his workers, offering $250,000 signing bonuses and 60 percent salary increases.

 

[tonybelding]

In the article, the author hypothesizes that 3x Tesla market cap would get a deal done, given necessary assurances that Apple would use it's resources to speed the revolution rather than muck it up.

IMHO, this doesn't make good financial sense for Apple -- and they have much better options if they want to buy a car company.

How about, say. . . Mazda? There's a company that already has production facilities, engineering facilities and staff, distribution network, etc. They don't have any experience with electric powertrains, but so what? Apple can develop that technology themselves, just as Tesla did. I'm sure Apple has no problem getting and keeping electrical engineers.

 

[jerry33]

How about, say. . . Mazda?

Given the assumption that Apple only wants to sell only electric cars (and if they don't they're no better than GM or Ford) they would purchase Mazda, lay off 90%, start over, and have to deal with their dealers. That doesn't sound like a recipe for success.

 

[30seconds]

Given the assumption that Apple only wants to sell only electric cars (and if they don't they're no better than GM or Ford) they would purchase Mazda, lay off 90%, start over, and have to deal with their dealers. That doesn't sound like a recipe for success.

Dealers would be be a major issue. Maybe Apple would cut a deal with Chinese or Korean manufacturers to private label something. I assumed that was the point about talking to the Austrians. I think Mazda would only really work out of bankruptcy

 

[bluenation]

mazda is really hitting out of the ball park with their excellent current gen line up

id hate to see that destroyed by the taint of apple/jony ive

fortunately, that's unrealistic hearsay/distopia, so it aint happenin


whew!

 

[1208]

Topgear on the iCar http://www.topgear.com/uk/car-news/apple-icar-project-titan-electric-car-2015-02-19 They can't help having a go at Tesla as well.

 

[Mitrovic]

What needs to be considered when thinking about those rumors:

- It is far easier to build an electric car then a combustion engine car!
- If or when the price of the batteries drops, the profit margin for electric cars can be hugely better then with ICE cars
- There are factories who are excellent in building a car, and as other companies are building Apple's iPhone's, other factories could build Apple's iCar.

 

[jerry33]

- There are factories who are excellent in building a car, and as other companies are building Apple's iPhone's, other factories could build Apple's iCar.

That worked really well for Fisker.

 

[Mitrovic]

Actually it was not the fault of Valmet. The quality problems of the Fisker had nothing to do with Valmet's work. Valmet produced cars like Saab's and the Porsche Boxter.

And actually yes, there are several potential new companies talking to Valmet right now, and I think Apple might be one of them.....

 

[RobStark]

Actually it was not the fault of Valmet. The quality problems of the Fisker had nothing to do with Valmet's work. Valmet produced cars like Saab's and the Porsche Boxter.

And actually yes, there are several potential new companies talking to Valmet right now, and I think Apple might be one of them.....

Valmet has a one shift capacity of 30k units per year.

Magna Steyr has 200k unit capacity but half of that his spoken for by BMW.

They also have contracts with MB and Porsche.


There is not much capacity in the industrialized world for contract auto manufacture.

So if Apple wants to mass produce an iCar they have to do it themselves, pay big premiums for a contract manufacture to expand capacity or manufacture in China.


Good look charging Apple premiums on an iCar made in China/Taiwan.

No one ever died because of a defective Smart phone.

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mazda is really hitting out of the ball park with their excellent current gen line up

Mazda has no competency in electrified vehicles and are trying to worm their way out of selling zero emission vehicles in CA.

They are zoom zooming their way off a cliff circa 2025.

 

[rtz]

Stories broke last year about the Apple/Foxconn car in China:

Apple Manufacturer Foxconn is Working on a $15,000 Electric Car for China | Inhabitat - Sustainable Design Innovation, Eco Architecture, Green Building