The Apple Inc. (AAPL) Car has been a delicious rumor in recent weeks and months, but now these murmurings seem to be coming to fruition. Apple has been linked with producing an electric car largely thanks to its apparent ties with Tesla (TSLA), and now the world’s leading electric car manufacturer has helped to solidify those rumors still further.
Tesla positive about Apple Car
During an earnings call, the CEO and founder of Tesla, Elon Musk, was asked about the looming threat of an Apple Car in the future. It is pretty obvious that if the world’s largest company in terms of market capitalization releases and an electric vehicle that this could have a significant impact on Tesla’s business model. But far from being concerned about this prospect, Musk replied that he actively hopes that Apple gets into the car business, and that this notion “would be great”.
One should not underestimate the potentially disruptive influence of Apple in the auto market. Apple has previously turned the mobile phone marketplace completely on its head with the release of the iPhone in 2007. Indeed, the smartphone from the consumer electronics giant is now so ubiquitous that it seems barely believable that he was only released for the first time a mere eight years ago.
While there would be significant challenges for Apple in releasing an electric car, the company certainly has the potential to move into such very diverse avenues. Unquestionably, Apple would face logistical issues in producing an electric car, but it seems that the reports which suggested that this could occur by the end of the decade are more accurate than some observers perhaps thought at the time.
Tesla cool on Apple staff poaching
During this public event, Musk also spoke about an issue which has perhaps initially precipitated the Apple Car rumors. Apple has poached numerous employees from Tesla, and it is thought that this is strongly linked to the desire of the corporation to manufacture is an electric vehicle. Musk previously conceded that Apple held direct talks with Tesla in 2014, but at the time dismissed the idea of an Apple buyout of Tesla.
