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Tesla, Google, Apple: Is Silicon Valley the future of U.S. car industry?

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Anybody willing do actual research on the subject will find out easily that the numbers at Tesla are going down and down. The sad truth is, that what actually might be good idea still needs great sale arguments. The market for an outrageously expensive toy for people who want to demonstrate to the rest of the world how ecologically conscious they are, is rather small. A simsilar product like apple iPhone or iPad is successful, because they are as ridiculously priced, but cost no more than the average person can still afford in his desire to be "special". A Tesla is not....

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Google and Apple have lots of money to burn on toy projects, but I don't know if Tesla does. Don't see that many Teslas even in Silicon Valley, their home turf. And a lot of those probably sold with employee discounts. Don't know how successful Tesla has been nationwide, think they have had problems in Texas, apparently it is ironically a closed shop with respect to non-franchise car vendors.

I guess maybe Elon Musk does have money to burn, though. But not as much as Google or Apple.

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Ah No, silicon valley is not the future of the auto industry. First silicon valley is the labeled center of IT, much like Hollywood is the labeled center of the entertainment industry or Detroit is the center of auto. But the reality for all 3 is there is much more happening outside the respective areas. there is more tech research happening, more tech development happening outside silicon valley and majority of the most effective tech inventions happen elsewhere. Silicon valley suffers from it's own arrogance, leading to a mentality of acceptable levels of failure. Automotive tech has little room for the silicon valley tech with EULAs that basically say use at your own risk, our stuff is not guaranteed to Do anything, could even kill you. Automotive needs tech which works and can be guaranteed to work. So there might be one good idea out of 100 in silicon valley, But the auto companies will take the one good idea and need to good elsewhere to make it all happen.

1 ( +1 / -0 )

There isn't going to be an iCar. There simply enough of a profit margin in the automotive industry after having to R&D, source, and build an entirely new car from scratch (remember, Apple only markets unique products that don't share any tech, parts, etc. with existing competition/products). There is no realistic expectation that Apple can become a leader in the automotive industry, and because they're used to being industry leaders in whatever they venture into, they won't do it. The automotive industry (manufacturing, marketing, sales, service, etc.) is far too complicated at this point to enter in a scale that Apple would have to and there's far too little profit to be made for them. Just because Apple has the capital doesn't mean that they will do it. They are a business after all.

1 ( +2 / -1 )

Apparently Apple is not immune to this idiocy that has struck Google. Not that I wouldn't wish for Apple to throw its money away.

-2 ( +0 / -2 )

roll on the iCar. and if Google make one people will know where all of us are all the time.....

-3 ( +0 / -3 )

Google cars will use google maps, iCar will use Apple Maps. :p

Tough choice ... Not. Google let's you switch the notification off.

-1 ( +1 / -2 )

And still they would probably come out with a car that is no more revolutionary than a model T with 4 wheels and a steering wheel that looks like all the other cars on the road.

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I recall many years ago when Microsoft was talking to the then "Big 3" about collaborating and installing computer systems to make a "Smart Car"... the deal was called off because Microsoft couldn't meet any of the deadlines due to program bugs, and it was determined that the IT industry just cannot keep up with the pace of the automotive industry.

The automotive space is so highly competitive today, and margins in new car sales are extraordinarily thin, which is something Apple is not used to.

...that pretty much sum it up.

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