Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Car Business: A Reality for Tesla Motors Inc (TSLA), A Fantasy for Google Inc (GOOGL) and Apple Inc. (AAPL)?

Tesla Motors Inc (NASDAQ:TSLA) is one of the masters of the car manufacturing business, designing and manufacturing premium electric vehicles, but ‘cars’ is totally a new chapter for the tech giants Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL). A CNBC article discussed how aspects of the car business would be tougher for Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL) compared to Tesla Motors Inc (NASDAQ:TSLA), which already has lots of resources for such a business.

Tesla Motors Inc (NASDAQ:TSLA) Google Inc (NASDAQ:GOOGL) Apple Inc. (NASDAQ:AAPL)

“Electric-car darling Tesla Motors assembles its own cars, makes its own batteries and, like Apple, runs its own stores where it can but Tesla has run afoul of state franchising laws that protect incumbent car dealers. Putting a mechanic at an Apple-store “genius bar” could be as hard to do legally as it is, well, to find mechanics who are geniuses and a base of outside auto manufacturers would have to be built,” said Theodore O’Neill, Ascendiant Capital Partners Analyst.

Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL)’s dream of car manufacturing seems likely to remain a fantasy as they have no comparable base for car manufacturing like Tesla Motors Inc (NASDAQ:TSLA). “AppleCar” is an electrically powered and self-driving car. According to a Barclays report, only 400,000 of 88 million+ cars sold globally last year were electric and none of those were self-driving. On December 22, 2014, Google Inc (NASDAQ:GOOGL) unveiled a fully functioning prototype of their driverless car and planned to test it on San Francisco Bay Area roads beginning in 2015.

At $1.6 trillion a year, the car manufacturing market is four times bigger than the smart-phone business. According to Morgan Stanley analysts, Apple Inc. (NASDAQ:AAPL), which is currently the world’s richest, most valuable technology company, will meet one of its most challenging businesses. Back in 2012, Google founder Sergey Brin stated that Google’s self-driving car will be available for the general public in 2017, while Apple Inc. (NASDAQ:AAPL) is planning to bring its electric car in 2020, whereas Tesla Motors Inc (NASDAQ:TSLA) is already in the market with its Model S, which was declared the best car overall in its class recently by Consumer Reports magazine.

“It doesn’t seem to us that Google is necessarily interested in entering the automotive manufacturing business, but it seems interested in dominating the OS so it can augment its search experiences. Apple may need to pursue an iCar so that Android won’t be the mobile platform of choice while traveling,” a Barclays Analysts stated.

People usually spend 10% of their free time in cars, so those who sell content and ads want to reach them there. That’s the reason Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL) are already partnering with car makers for their CarPlay and Android Auto, to have passengers link their smart-phones with cars’ electronics. As Morgan Stanley predicts, Tesla Motors Inc (NASDAQ:TSLA) should achieve 15% operating margins by the middle of the next decade. If Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL) want to join Tesla Motors Inc (NASDAQ:TSLA)’s car manufacturing race and win it, they will have to look into its planning and strategies or come up in front with more intelligent ones of their own.

I jsut made 84% in 4 daysI Just Made 84% in 4 Days By Blindly Following This Hedge Fund

I just made 84% in 4 days by blindly imitating a hedge fund’s stock pick. I will tell you how I pulled such a huge return in such a short time but let me first explain in this FREE REPORT why following hedge funds’ stock picks is one of the smartest things you can do as an investor. We launched our quarterly newsletter 2.5 years ago and not one subscriber has, since, said “I lost money by EXACTLY following your stock picks”. The reason is simple. You can beat index funds by creating a DREAM TEAM of hedge fund managers and investing in only their best ideas. I just made 84% in 4 days by blindly imitating one of these best ideas. CLICK HERE NOW for all the details.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.