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Apple is advancing its autonomous car technology and is targeting 2024 as the year it will produce a passenger car, according to a Reuters report.
Five experts weigh in on what this news means for stocks.
Jim Cramer, host of CNBC’s “Mad Money,” said a product may or may not come to fruition.
“If they have a product that is superior, let’s say Tesla, then they will launch it. If they don’t have it, they won’t. [CEO] Has Tim Cook ever released a product where he didn’t think customer satisfaction was right? … I don’t think you want to buy the shares up to 4% [Tuesday], knowing that they say ‘No comment’ “.
Danny Fortson, a senior business reporter for The Sunday Times, called this a “gold rush” in the electric vehicle market.
“If you look at a Tesla, in many ways it feels like an iPhone on wheels. And then you can see the logic there, but they will have to overcome several obstacles, among which the cost is the least. One of the obstacles for electric cars all in all it’s way more expensive up front. That said, the technology, whether it’s battery tech, which is the single biggest cost for an electric vehicle, costs about a third of the full label price, that’s down dramatically. , something like 75% in the last 15 years. So you are reaching a point, although if you talk to people in the industry, 2021 is the year, it is the inflection point where you will have a dozen, two dozen cars in the next 12-24 months coming onto the scene, reasonably priced electric cars, a lot of them. So there’s a moment here, there’s a bit of a gold rush in the electric car industry and Apple obviously is looking is or “.
Alex Kantrowitz, founder of Big Technology, said Apple is probably focusing on the artificial intelligence of self-driving cars.
“The manufacturing of the cars, the distribution, that’s the easy part. The difficult part of autonomous driving, which is what they aim for, is getting the AI technology to work to the point where you can put these cars on the road and not having hit and kill people. And I don’t think Apple is at that point right now, so if they focus in that direction, they’ll be in better shape and have so much cash that they’ll calculate distribution and manufacturing, that is. really on the line. “
Austin Russell, co-founder of Luminar, breaks down the ins and outs of OEMs.
“If you want to build something that can actually go into production, you know, you really need to work directly with the OEMs. [original equipment manufacturers] They’ve been making cars for, you know, decades, centuries here, in some cases up to a century. So I think it all comes down to this is where the proper partnership model comes in. They all have their niche in terms of what they do. Obviously, the apples of this world have an incredible ecosystem of things to harness. When it comes to the OEM model and that look, they obviously have their specialty in what they do. And then of course we work with all these different OEMs to be able to integrate this technology, starting with the development phase and then moving into production with some of the other programs that we have released. When it comes down to it, if you want to have something that is really viable … you really need those huge economies of scale. And that’s where the consumer production vehicle comes in, but that’s really our primary focus. “
Stephanie Link, Hightower’s chief investment strategist, said Apple is in a good position to develop the hardware and software for a self-driving car.
“The total addressable market for electric vehicles by 2027 will be $ 800 billion. Last year it was $ 165 billion. So clearly there is growth. But there is also a lot of competition. In fact, I would be surprised if they actually made a car. , because the profitability is much less, but I think what they are perhaps looking for more is to really improve the driving experience, use hardware, use software, use services, and they can do this because they just incorporated five internal core technologies. They brought processing, batteries. , They bought cameras, sensors and screens to package it and then sell it. “
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