Take up the trusted analyst (Ming-Chi Kuo) Ming-Chi Kuo Rumors: That Apple’s electric car may arrive anytime before 2025, warning that many elements are still under development.
The report released earlier this month claimed that many auto parts factories in Taiwan were speeding up shipments to a company Apple to launch the Apple Electric Car in September 2021.
The report’s questionable information appears unlikely for a number of reasons, such as: the lack of precise specifications for the vehicle and the seemingly short lead time to produce such a large product.
On a note to investors, analyst Ming-Chi Kuo of TF Securities cautioned against believing the hype surrounding the report, which helped boost the value of conceptual shares of companies presumably linked to Apple’s efforts.
Buying stocks in related companies is a quick reaction that may be short-lived, with Kuo suggesting that there are at least three reasons why investors are not doing so now.
It has been recognized that uncertainty about the launch schedule, lack of a vehicle supplier or specifications, and uncertainty about Apple’s competitiveness in the electric and autonomous car market are major issues that must be taken into consideration.
While TF Securities had predicted in a previous report the launch of Apple’s electric car between 2023 and 2025, the company’s latest survey indicates that the company’s current development schedule is unclear.
And if Apple starts working in 2020, and things go well, the potential launch of the self-driving car could be between 2025 and 2027, according to an estimate by TF Securities.
Given the changes in the electric and self-driving car market and Apple’s high quality standards, Kuo said, we wouldn’t be surprised if Apple’s electric vehicle launch schedule was pushed back to 2028 or later.
The memo adds that the specifications and suppliers in the reports and rumors are only speculations and do not include the actual suppliers of Apple’s electric car.
Also, the continuous evolution of technical specifications makes it premature to talk about the final specifications early before the expected launch.
As for competitiveness in the market, TF Securities feels that the main success factor for Apple’s electric car is not hardware, but big data for self-driving and artificial intelligence, an area where Apple has not shown significant competitive advantages in its current products.
One of Kuo’s big concerns appears to be that Apple could be 5 years or more behind in deep learning compared to Tesla and Waymo.
Kuo notes that competition in electric and self-driving cars is fierce and that you can’t assume Apple will succeed.
Notably, Morgan Stanley takes the opposite view as Kuo on Apple’s electric car at the moment, believing that Apple has an interest in enhancing the driving experience through the vertical integration of hardware, software and services, and views the project as a long-term project.
From another point of view, Goldman Sachs analysts believe that Apple is most interested in the in-car experienceGoldman Sachs wrote about the timing of 2024, suggesting that the car would make sense as a hardware platform that supports services, but the high costs associated with its launch could mean it will have a limited impact on investors.