Apple might just be the biggest competitive risk that Tesla could face in the near term, says Loup Ventures’ Gene Munster in an interview about “Apple Car” rumors in 2021.
In a conversation with CNET’s Brian Cooley, Munster said, “it is very clear that Apple has ambitions to build a car.” Munster, a co-founder as well as a partner at Loup Ventures, said that this intention wasn’t clear in late 2020.
How significant a threat is an Apple car to Tesla?
However, in early 2021 Munster said that he was surprised that Tesla shares had not been more negatively impacted by rumors of “Apple Car” development ramping up. He was also surprised that Apple shares have not surged because of the rumors. “I think Apple is Tesla’s biggest competitor,” Munster said in the conversation.
Despite that, Munster further explained how he believes that both companies can coexist in a future auto market. Both Apple, as well as Tesla, have the potential to seriously hurt existing automakers. According to Munster, the “next wave” of transportation will come from the technology industry. “This means that Apple is going to be a competitor to Tesla, and Tesla needs to figure this out,” Munster commented during the conversation.
The Loup Ventures co-founder predicted that a decade from now, Tesla could have 25% of the global electric vehicle market share, while Apple, could have 5%, 10%, or 15%, he added.
Munster played down the speculation that Tesla and Apple could ever merge, he claimed that both companies are too unrelenting when it comes to controlling of their products.
As to answer why Apple would wish to enter the vehicle industry; the analyst says that it is the addressable market. “It’s orders of magnitude are larger than anything Apple has gone after before. What keeps tech companies awake at night is the growth,” he said.
Even though previous talks between Apple and automaker partners were reportedly fizzled out; Munster believed that is not going to change the Cupertino tech giant’s mind on this matter.
“We do not have a signed deal with any automaker, however, that does not change this direction that Apple is going,” Munster added.
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