While there once were musings of rumors that Apple could consider buying the electric car manufacturer Tesla, the company’s CEO and founder Elon Musk has clearly stated that Apple will be its competitor. However, Musk isn’t intimidated by the size and scale of Apple and its successful track record. He has no fears of the tech giant getting in the way of his company’s progress.
In fact, Musk believes Apple has not utilized the market sufficiently well and that it’s just too slow in its approach. However, he considers Apple to end up as Tesla’s direct competitor unlike Alphabet whose self driving cars could be showcasing technology that would be licensed to auto manufacturers.
Room for Everyone in the Electric Car Market
Musk is of the opinion that Apple should have entered the electric car market much earlier. With the company having just started on this electric car idea, Musk believes it would take at least till 2020 to begin volume production. However, he thinks it would eventually be successful thanks to the sheer size and potential of the car industry. The most a company could hope to gain is 10% of the market share. And even though Tesla may be extremely popular in the electric car segment, others could also enter and be successful since the magnitude of the industrial infrastructure is gigantic. Musk is of the opinion that, eventually all auto manufacturers would end up competing in this electric car market.
Battling Hard in the Human Resources Arena
Apple and Tesla are however already fighting in the human resources arena with both the companies having hired staff from each other, with the latest high profile switch being that of former vehicle engineering vice president at Tesla, Chris Porritt to Apple. And while many of these switches involved personnel who weren’t significant enough to Tesla, Porritt was a key executive at the company. And this competition for brainpower could intensify as Apple gets closer and closer, as the rumors say, to launching its first electric car.
Despite Musk’s view, Tesla would do well to watch out for Apple since a company of its size and success usually plays its cards well. But with Alphabet already there and Tesla an established player, it certainly wouldn’t be a walk in the park for Apple.
And these corporate churnings could have repercussions in the stock market as well. So make the most of online trading to gain experience and benefit from major company moves. At TradeZero, our sophisticated trading software helps you stay in control and make the right decisions. Call us at 954-944-3885 or email firstname.lastname@example.org.
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