Apple to get into cars and search?

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Rumors have it that Apple is pursuing entry into the automotive and search engine spaces. Is this a good thing?

Apple maps didn’t start well and one has to wonder if they are reaching too far from their core businesses. The search engine makes some sense to me. Siri seems to have the framework to make a project like that work. Plus, Mozilla changed their default browser to Yahoo recently, so now or soon may make sense to unleash their search engine given the perception that Google's dominant position isn't as impregnable as before.

The car does not make sense at first glance, but it doesn’t have to right now because we have no reliable information on what exactly is in store. I would welcome them to an industry, as I have said in other posts, that should be moving faster.

Is this a bad thing for Tesla?

My gut says no. Apple’s brand will give the electric car more attention which could lead to more acceptance, just like their watch will to luxury watches according to the watchmakers. I’m assuming they’re going to be electric or some special kind of hybrid. Apple and petroleum just don't go together...

They could be doing Tesla a favor if it’s electric and the cars are cross-compatible with charging stations. The infrastructure doesn’t exist in a lot of the US and having even a competitor start adding to it would be good. Nevertheless, what matters most is how Apple would position the car.

Tesla isn’t just an electric car, it’s a luxury performance electric car. The performance has been getting a lot of attention recently, but 0 to 60 in 3.2 silent seconds will do that. It's called insane mode for a reason...

How would Apple position their car? 

Will they pursue another level of performance geared towards something different like driving range, charging time & method, connectivity & interface (cue iPhone or iPad), and something new that people don’t associate with real cars? 

What could the something new be?

It’s an intriguing question. One I will be thinking about over the couple weeks. 

An award you don't want to win

The 2014 Luddite Award Winners - the states of Arizona, Michigan, Texas, and NJ (see here for the post) for blocking Tesla's attempts to sell directly to its customers. The award essentially calls out those who are opposed to new technologies. 

The NRA took second place for their opposition to smart guns. 

In both cases this is a matter of continuing the status quo. I have another musing on Tesla that very briefly explores both sides, here.

I will probably tackle the NRA issue in a later musing or blog post. Some research needs to be done on what the arguments are for the NRA's stance, but some questions that people, including myself, are asking include:

• how many school/public shootings need to occur before we do anything? 
• what does the rest of the world think when they hear about these stories? 
• what is it going to take to for change to happen?
• if smart guns (and diligent background checks) aren't part of the answer, then what is? 
• is it possible to design a system that prevents the tragedies from ever occurring...without smart guns and background checks?

Whoops

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Wow, completely forgot to post yesterday. The blog has not become second nature yet. I'll get there. Moving on!

Yesterday my google alert sent some results for Tesla and I noticed yet another state, Texas, has their dealerships fighting Tesla over direct selling (click here for the post). What was interesting was the dealer's take on monopolies, "Tesla itself is seeking a monopoly, since no other company could sell Tesla Motors’ product."

I have to admit my initial reaction was, "wait, what?!" Obviously, my gut is biased towards Tesla, but as I have become more aware of these preconceptions I try to keep an open mind and consider the other side. I read on and eventually understood how the dealerships may think this. They brought up a valid point about manufacturers being more concerned about shareholders and the dealerships' support of local schools and hospitals. However, I think this only has merit if other manufacturers follow suit. Otherwise, Tesla isn't really a huge threat...yet.

I totally get why Tesla wants to sell direct. I'm sure there's more going on, but to me the main thing they're trying to accomplish is controlling the Tesla experience from start to finish. If it was almost any other industry, there would be no story as most companies have the option to sell direct. 

For an industry that I think could be moving much faster than it is, Tesla ruffling some feathers is good for both the industry and its customers. A new and unique (to the industry) business model was long overdue. Will the other companies get creative with theirs?