Tesla Vs Apple: Innovation, Competition, Ambition and Hey, Drive!
One really innovative company that we’ve always respected (and watched over) is Tesla. Under the leadership of PayPal mogul Elon Musk, the California-based company caused quite an (electrical) storm when it launched its groundbreaking ‘Roadster’ in 2006. The roadster was a true leap forward in electronic vehicle (EV) technology. ); It was not only the first EV to use lithium-ion battery cells, but also the first to travel more than 200 miles on a single charge. The launch of the ‘Model S’ in 2012 reinforced Tesla’s position as one of the most innovative and technologically advanced car companies in the world.
Musk recently predicted that by 2025, Tesla would be worth more than Apple! Since Apple is breaking all records in terms of revenue and profit, Elon would have to grow his company by 30% each year while Apple remained stagnant. Possibly not that unrealistic given that annual e-vehicle sales are projected to reach 3.8 million by 2020 worldwide.
Speculation is reaching a fever pitch in light of the ongoing poaching war between the two companies. Apple is allegedly handing out very attractive bonuses of $250,000 (plus 60% pay raises) to entice Tesla employees to jump ship, leading to speculation that Apple is preparing to launch its own vehicle. Rumors of Apple’s ‘Project Titan’ have circulated following reports of highly modified Chrysler minivans driving around New York and San Francisco.
It’s not just Tesla that Apple seems to be targeting; Following allegations of aggressive recruiting practices by A123 battery makers (the subject of an ongoing lawsuit), Apple is also said to be seeking staff from auto giant Mercedes-Benz.
The former Ford engineer who designed the original iPod and iPhone, Steve Zadesky, heads the 1,000-person team working on Project Titan at Apple’s headquarters in Cupertino.
There has been talk of a possible deal between Apple and Tesla for some time, and Musk commented that he is not fundamentally opposed to working with Apple:
‘From a design philosophy, [Apple] is relatively closely aligned’. Of course they are… there’s what’s basically a giant iPad affixed to the center console of Tesla’s Model S and the upcoming Model X.
A purchase of Apple is unlikely to be approved given Elon’s huge growth forecasts for the future, but whether or not this ultimately ends in a purchase, Apple will likely continue to hire staff with automotive knowledge from Tesla, Ford, A123 and others.
Given Apple’s successful track record in making mainstream ‘sexy’ consumer products, an iCar would certainly be something to consider, and I suspect Elon Musk will be first on the list to receive one!