Tesla boss
Apple’s car plans were considered a threat to Tesla – this is how Elon Musk reacts to the end of the project
Elon Musk is – among other things – head of the car company Tesla
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Fans have been waiting for Apple’s first car for years. Now, surprisingly, the end of the project has been announced. Elon Musk appears relaxed. The biggest danger for Tesla is not over.
The end came as a surprise: after more than ten years Apple has informed its Project Titan employees that it will be discontinued. Behind the name lies one of the company’s most ambitious plans: Apple’s own car. The Apple Car was repeatedly seen as a threat to Tesla. It’s no surprise that CEO Elon Musk is now speaking out at the end of the project. However, he was emphatically calm.
When the news reported by “Bloomberg” citing insiders made the rounds on Tuesday evening, Musk shared a post from the stock exchange account “Unusal Whales” on his short message service X that referred to the end of the project. His own first comment consisted of just two emojis: a saluting and a lit cigarette.
Elon Musk is emphatically relaxed
He didn’t explain exactly what he wanted to say. The saluting emoji is usually used as a farewell and show of respect; the cigarette could represent relaxation. Only his only other post on the topic so far gives a little more context: “The natural state of a car company is its death,” Musk posted in comment to another post that tried to explain Apple’s thought process for this decision. And emphasized that Ford and Tesla are the only US car manufacturers that have never been bankrupt. Musk has also repeatedly emphasized how difficult it is to produce cars profitably.
He has also repeatedly revealed what the Tesla boss thought of Apple’s car plans in the past. “Cars are much more complicated than phones or smartwatches,” he complained about Apple’s plans to Handelsblatt. “You can’t just go to a supplier like Foxconn and say, ‘Build me a car.'” Apple is just a kind of graveyard for Tesla anyway, he joked in the same interview. “If you don’t make it at Tesla, you’ll leave Apple.”
Danger averted?
Industry observers definitely saw an Apple car as a possible threat to Tesla. Apple often appeals to the same customers and has a very loyal and above-average wealthy fan base worldwide. Above all, for many people, Apple stands for quality: While Tesla is still struggling with production defects such as gaps and sometimes severe failures due to software problems, one would have expected a much more sophisticated product from Apple.
In fact, it is quite conceivable that it was precisely this claim that ultimately led to the end of the project. Apple’s plans, which were never officially confirmed, called for a fully autonomous car; it was only in the fall that Apple tripled the number of test drives on a route in the Arizona desert (Here you can find out how the secret test track was discovered). According to “Bloomberg,” there were recently considerations of postponing the release until 2028, instead of just offering a few assistance systems instead of a real self-propelled vehicle. But apparently these prospects were not enough for the leadership: in the last few weeks the decision was made to pull the plug.
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Carplay success factor
Tesla probably still can’t breathe a sigh of relief. Apple will enter the market as a direct competitor – but indirectly this can be a disadvantage. Because the group is already a success factor – for other manufacturers. With its Carplay operating system, Apple’s iPhone can also be used in the car display. Customers appreciate this: Fans of premium manufacturers such as Mercedes, BMW and Audi in particular stated in a 2022 study that the lack of integration of their own smartphone would be a reason not to buy a car.
If Apple has now scrapped its own car plans, this could benefit Carplay: Apple had already announced a comprehensive renovation of the system in 2022; it will now also be connected to sensors and vehicle functions. The question was always whether Apple would hold back features in order to offer them in its own car. If this aspect is eliminated, Apple could well have an interest in selling the functions to other car manufacturers. Incidentally, Tesla is not among them. The company is one of the few car manufacturers to offer neither Apple Carplay nor Google’s Android Auto.
Sources: Elon Musk, Bloomberg, Bearing point