Apple May Soon Join Tesla In The EV Auto Sector

Recently Apple (AAPL) threw its hat into the ring when it announced its intention to move forward with developing self-driving car technology. It should be noted that when a company with the market cap of Apple and a great deal of money decides to move into the auto industry it can buy all or most of a struggling automaker. This would give them an instant production capacity. This means Apple can rapidly jump into the EV market. 

According to Reuters, Apple is targeting 2024 to produce a passenger vehicle. Make no mistake, this has the potential to derail Elon Musk's plan for Tesla to put out a million robotaxis. This places Apple in the position of competing with others with major self-driving projects, including Tesla and Google/Alphabet's Waymo project which stands for a new way forward in mobility. Google started working on a self-driving car several years ago but so far has little to show for its effort. 

Apple seems very interested in pushing its way into this sector of the economy. Adding to the validity that Apple is serious about moving in this direction, Reuters also reported Apple's cars might include sensors and a new "monocell designed battery" that has been developed internally at Apple. Such a battery could be a much-needed breakthrough in battery technology. The lack of better batteries is one of the biggest problems currently facing the EV industry. 

All EV manufactures are seeking new battery designs that could "radically" reduce battery cost and increase a vehicle's range. A better battery has been seen as the Holy Grail of the EV industry. While some people point out Tesla has been moving to improve its batteries the same could be said about all these companies. More efficient motors in these vehicles are also important. The Toyota Prius also uses IPMSynRm Motors such as used in the Tesla Model 3.

An interesting question was put forth in the form of a comment on another webpage: How many of the 499,550 Telsa's sold in 2020 were to straw buyers? and of those, how many will be dismantled and have their parts recycled back into 2021 models? This comment suggests that some people and investors forget how numbers can be fudged and Tesla has a great incentive to do such a thing. The company is in a self-feeding loop and so overvalued that it can afford to buy its cars and ship them to the bottom of the sea because each car they sell has been driving its stock ever higher.

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William K. 1 month ago Member's comment

Certainly an interesting article! And the folks at Apple really need to understand that there is a whole lot more to a car than the drive system. Those pesky details about handling and comfort and consumer appeal in general can be show-stoppers.

As for the battery aspect of EVs, there is another side, which is charge power availability. If the perfect battery were available cheap today there would still be a huge limit on how many folks could recharge, because every bit of that power has to come from some source and pass through the power grid, which was never adequate for that much capability.

And certainly most folks do not want a computer driven car, because most folks do not hate to drive, and most folks do not have those accidents that the touts are constantly raving about. In addition, there is the whole software issue, because nobody would be willing to own a vehicle that required weekly updates to fix bugs that should never have been present. A car is not like an operating system, where crashes are fixed by a press of the reset button. The dollar cost of adequately validated code will keep the safe computer driven car off the market for many decades.

Adam Reynolds 1 month ago Member's comment

Doubtful.