| | | The car would be great. But it's a dream at this point. More of a pipe dream the way I see it.
Look a Tesla Motors. Their cars are the most successful and consistently well-reviewed cars on the planet. They garner a huge amount of press. They're fast, powerful, attention-getters that can't be produced fast enough to satisfy substantial demand. The mere announcement of their latest Model 3 car got over 400,000 people to plunk down $1,000 each to reserve one for themselves––all for a car that won't even start deliveries until late in 2017.
Yep, a great company Tesla is––highly successful and run by a dynamic "rock star"-type CEO who dabbles in launching rockets into space on the side....
Tesla also has yet to turn a profit.
They currently enjoy a market cap of over $30 billion and have an EPS of -6.93. They have nearly $3B in debt as well. Yikes.
Does anyone think Apple can create an electric car even approaching the lure of a Tesla? I fear they'll create an expensive car filled with great gadgets and doo-dads but with very little styling or street appeal. It'll be some VW Beetle-looking contraption appealing to a few old hippies and Apple Fanboys, but to no one else.
But let's assume they don't create an overpriced FrankenCar and make something that might garner some of the success Teslas have enjoyed. Can they make a profit on it anytime soon after introduction? Obviously, Apple has billions of dollars in cash to throw at a car, but will they ever get that money back?
I have my strong doubts. |
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