Apple's Billion-Dollar Car CRASH: What's Next?
Apple's One Billion Dollar Electric Car Project Failure and Its Impact on the Autonomous Vehicle Industry: What Comes Next?
Questions to inspire discussion:
💬 Why was Apple's project to develop an electric car, known as Project Titan, cancelled?
Apple decided to wind down their electric car effort, known as Project Titan, after a decade-long attempt. The decision was made to shift focus to the company's AI division.
❓ According to Tim Cook, what did he refer to as the 'mother of AI projects' in 2017?
the company's self-driving car project
💬 How could Apple benefit from redirecting its investment towards AI instead of pursuing the auto market?
Apple could benefit from redirecting its investment towards AI instead of pursuing the auto market by focusing on the technology that is currently relevant and rapidly advancing, such as AI. This would allow Apple to potentially develop groundbreaking AI products that could have a significant impact on various industries. By avoiding the challenges and limitations of the highly regulated and low-profit margin auto market, Apple can allocate resources more efficiently towards innovation in AI, which is expected to be a key driver of future technological advancements.
🤨 Why do some people consider Apple's attempt to enter the auto market a blunder?
Some people consider Apple's attempt to enter the auto market a blunder because they believe Apple should stick to what they are good at, which is software and device design, rather than venturing into manufacturing vehicles. Additionally, the delay in making decisions and the potential missed opportunity in tapping into a $10 trillion industry have led to this perception.
❓ Why does the speaker believe that Apple should have stuck to the entertainment part of the business in the car industry?
The speaker believes that Apple should have stuck to the entertainment part of the business in the car industry because they feel that Apple had no reason to venture into the car industry in the first place. They think Apple should have focused on enhancing the entertainment aspect of cars rather than trying to control the entire car experience.
❓ How much money did Lucid and Rivian lose per vehicle?
Lucid lost over $200,000 per vehicle, while Rivian reported a $40,000 loss per vehicle last quarter.
Key Highlights:
Apple discontinues long-term electric car project, potentially impacting Tesla and other automakers.
Missed opportunity for Apple in the AI industry due to focusing on self-driving cars instead of AI technology.
Apple's unsuccessful venture into the car industry with Tesla partnership speculation.
Challenges faced by electric vehicle manufacturers amidst global expansion and competition.
Financial struggles of traditional car companies contrast with Tesla's success, raising questions about sustainability.
Clips:
00:00 💥 Apple's electric car project terminated after decade-long effort, impacting 2,000 employees.
Apple winds down electric car project 'Project Titan', moving employees to AI division.
Project faced leadership changes, talent from Tesla, GM, BMW, but no product shipped in a decade.
Last project leader Doug Field left for Ford, current lead Kevin Lynch now reports to Apple's AI boss.
Approximately 2,000 employees working on the project likely out of a job.
Some talent from the project will be transferred to other areas within Apple.
03:55 💥 Apple's missed opportunity in the autonomous car industry due to lack of expertise and focus on AI.
Tim Cook referred to Apple's self-driving car project as the 'mother of AI projects' in 2017.
Apple's decision to invest in AI technology instead of pursuing the highly regulated auto market may have been a strategic choice.
Criticism towards Apple's failed attempt in disrupting the trillion-dollar autonomous car industry.
Skepticism towards Apple's capabilities in AI development and design, citing Siri as a failed product.
Acknowledgment of Apple's early success with Siri but the need for improvement and innovation in AI technology.
Recognition of Apple's potential in the autonomous car market despite the blunder in previous attempts.
Highlighting the significant opportunity for Apple in the autonomous car industry due to the high demand for entertainment during travel.
09:50 💥 Implications of Apple's decision to cancel its EV program and Tesla's stance on potential partnerships.
Tesla's focus on EVs and reluctance to partner with Apple due to conflicting strengths.
Speculation on Tesla's potential role as a general car designer and manufacturer.
Apple's declining product management post-Steve Jobs' era.
Apple canceled its EV program, hinting at challenges in the EV market.
Tesla CEO expressed reluctance to enter the US EV market due to complexity.
Discussion on the importance of investing in EVs for car companies' future.
B is likely to enter the US market despite political considerations.
13:12 💸 Financial struggles in the EV market with Tesla and other companies facing losses and uncertainty.
Lucid and Rivian experiencing significant financial losses per vehicle.
Volkswagen CEO expresses concerns over Tesla's repeated price cuts in China.
Tesla set to release new vehicles and compete with BYD in global EV market.
Pure Play EVs like Tesla are seen as the most likely to succeed in the industry.
European and American car companies may support failing Chinese EV startups.
Stagnation and struggles observed in the EV market with companies like Apple giving up.
18:19 🚗 Tesla's successful cash flow and simultaneous production of multiple car models showcase their growth and capability.
Tesla's cash flow is skyrocketing, indicating a successful period for the company.
The announcement of the Roadster and ongoing production of multiple car models demonstrate Tesla's growth.
The design lock for the next gen compact car has been completed and production engineering is underway.
Elon Musk confirmed the completion of production engineering for the next gen car.
Tesla's ability to focus on multiple projects simultaneously signifies their advancement in the industry.
Tesla is capable of producing multiple car models simultaneously, including the Semi, Cybertruck, and Roadster.
