Morgan Stanley: Apple could give ‘far more formidable’ competition to Tesla

Following a Reuters report on Monday citing undisclosed sources said Apple is targeting production of a passenger vehicle as soon as 2024, Morgan Stanley analyst Adam Jonas noted that it’s “long been the auto and tech hardware teams’ collective working assumption” that Apple will one day design and build vehicles, competing with Tesla.

Morgan Stanley: Apple could give 'far more formidable' competition to TeslaThe Fly:

The firm’s teams have also “long felt” that tech players like Apple “represent far more formidable competition” potentially for Tesla than the legacy automakers, Jonas said.

Yesterday’s story on Apple and its “Project Titan” … are a reminder of the potential scope of competition for capital, talent, and eventually market share with the EV arms race still in the early stages, added Jonas.

MacDailyNews Take: Certainly, that Monday Reuters report of an “Apple Car” forthcoming in 2024 caught Elon Musk’s eye.


    1. Never happen. Apple will never see even 5% of Tesla’s current P/E of 1200 or so. It’s just so crazy, but if investors believe the company is going to be that highly profitable, well, more battery power to them. I don’t think I have ever seen a company with a P/E of 1200, but if investors don’t find it unusual, maybe there are other companies with P/Es that high.

  1. It’s clear…Apple has a long and proven record of making a profit. Tesla’s “record” isn’t long, proven, or w/o subsidies. Maybe competition from a real contender would cause Elon to ditch his sensational and sometimes juvenile antics, that don’t belong in a publicly traded company.

    1. He is going to get a whole load of competition over the coming years from new traditional and Asian competitors the latter with western branding and image that will push his abilities to the limit to keep Tesla competitive.

      Apple will make life tougher though it may be more in effect than numbers as usual. They will start to take much of the top end that is vital to Tesla’s profitability with at least as desirable a brand and it will make credible, Asian made cars and parts that will make life very tough for incumbent western car companies I suspect especially those without serious quality and history to promote.

      So Apple will compete at the top end with likely a cheaper cost base and supply chain than Tesla equal or better technology over time and additionally open the door to cheap Asian manufacturers to start to take over the market below. I hope Tesla survives but I am not convinced it will independently longer term, as one presumes Musk himself had doubts about by trying to sell it. Equally he is likely more absorbed by his galactic absorbing Empire for the foreseeable future where he has in some compelling respects, a far greater lead. You get the feeling he gets bored with things once they get well past the market changing stage.

  2. I’ve heard that the auto business is a high-competition, low-margin business, so I wouldn’t think Apple would pursue such a business. I could understand Apple building AI systems for EV vehicles, but that’s about it. I figured if Apple were to sell vehicles, they would be priced over $100,000 due to the Apple Tax. Apple wouldn’t allow any of its vehicles to be serviced by some local garage, so you’d have to take it to an AppleCar Service Center for even the smallest of repairs.

    1. Nobody makes a decent profit from mobile phones, other than Apple. Has always been the case, yet they(Apple) entered the marker !! Nobody repairs Tesla cars other than a TESLA DEALER…Blows your theory. Tesla cars are approx $100,000. Finlay in an attempt to salvage something from your suspect assumptions, can you explain exactly what you mean by Apple tax 🤔

      1. Yeah I thought I was reading something from 1995. Fact is I have saved a lot of money investing in Apple products as well as a superior more satisfying and easier experience along the way and the Apple tax isn’t even used by the lazy PC owned tech writers who just loved to spread such one sided propaganda anymore because technology and the internet has all but extinguished whatever reality existed in that saleable myth and a long time ago at that.

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