Tesla CEO Elon Musk continues to dismiss the idea that Apple’s possible all-electric, self-driving vehicle, codenamed “Project Titan,” can compete with his empire, but there is evidence to suggest Musk should be concerned.
Musk told attendees at a technology conference Wednesday he expects the maker of the iPhone and iPad will have its first electric vehicle produced and ready to sell by 2020.
He even complimented Apple, telling the audience at the Code Convention the company will “probably make a good car,” and be successful. “They should have embarked on [the car] project sooner,” he added with a note of sarcasm.
Musk has ridiculed the company and its CEO Tim Cook in the past – he told the German business newspaper Handelsblatt in 2015, for instance, that the company Steve Jobs built is a “Tesla Graveyard” that employs rejected Tesla employees.
As Musk piles on the ridicule, it seems like a good time to point out five reasons why Tesla’s titular head should be quaking at the thought of Apple competing against him.
1. Unlike Tesla, Apple Actually Makes A Profit And Has A Lot Of Resources
Tesla’s cash reserves have tumbled this year below $1 billion, and are still falling, so it is likely the company might not survive long enough to deliver the much-touted, wallet-friendly Model 3 to people lining up to buy it.
In fact, the company was forced to sell $2 billion worth of stock just so it could raise the money to produce the Model 3, which has racked up nearly 400,000 pre-orders and is priced at $35,000. The stock sell off also covers all the tax obligations for the options exercised by Musk. Company officials said in May the automaker aims to build a half-million vehicles within the next two years.
The California-based automaker used $1.4 billion in common stock to cover the expenses associated with the production of its coming Model 3.
Apple, on the other hand, is swimming in cash, posting a record profit of $18 billion during the past quarter. It has more than enough capital to fund an electric vehicle venture. The California-based company also has $178 billion in cash in total.