Why an Apple EV Might be the End of Tesla
Over the last couple of days I’ve been having some further discussions with people about what sort of car Apple might create if indeed they are developing one. As I said in my first post on the topic the other day, if Apple is going to build a vehicle, it will almost certainly be a premium EV in direct competition with the Tesla Model S and Model X. For any company getting into building cars for the first time today, this is probably the only rational course.
A major component of the investment in developing a vehicle is the powertrain and for internal combustion engines, that is a huge differentiator with different manufacturers having decidedly different characters. In its existing businesses, Apple contracts with other companies like Foxconn and Samsung to do all the actual production and they likely would for a car which I’ll come back to. For most of the important parts that are actual product differentiators like processors and fingerprint sensors, Apple does the design work in-house and only them manufactured to their specifications. They generally don’t like to licence these components.
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