Apple Gives Up On The Apple Car

[@JosephCarlsonShow]

Join the Patreon here: www.patreon.com/josephcarlson Free Investing Philosophy Presentation: www.dropbox.com/scl/fi/vrtexx5dnv06npg1oatrn/Joseph-Carlson-Investment-Philosophy.pdf?rlkey=hsyb4c3ttf6nuvo3gknteyav9&dl=0 Patreon includes: 🎥 Over 100 exclusive videos, and new ones every week. 🚀 Full access to Qualtrim.com, the stock analysis website I built from the ground up 📚 Transparent portfolio updates, with every buy and sell I do, as well as monthly one-pager updates. 💬 Access to the Joseph Carlson Show private discord community, with 4,500 members The patreon comes with a free trial. You take no risk by signing up.

[@alessandrovalente7645]

You forgot the main reason: Apple cars do not have Windows

[@WilliamWelsh]

20th time ive seen this joke in the last day

[@depreciatingasset]

😂😂😂

[@Max_Ivanov_Pro]

Making cars is a risky business, glad Apple made the smart move to leave it behind.

[@HonestVirtue315]

Quite a lot of people, including professionals are saying the exact same thing on crypto, at least with car manufacturers you own actual assets.

[@HonestVirtue315]

Also, nice bots

[@JD..........]

Focusing on AI more heavily is the right move.

[@supercruchynoodle]

Yes 🙌. Electric batteries aren’t recycled at all

[@hankmiller990]

Apple just couldn't pull off what dozens of Chinese startups could. Xiaomi has a now a car. Apple is a marketing company, not a tech company.

[@MrSifaperdire]

Best move from Apple, why the hell wouldwthey jump in a sector that never makes money...

[@jin6000]

Yea, Tesla only made 15 billion last quarter. 🤡

[@davidgarza995]

@@jin6000for the longest tesla lost money almost went bankrupt its a tough business and even elon struggled to make tesla profitable

[@MrSifaperdire]

@@jin6000 i said sector, you can pick one or two exceptions but the sector stays the same. You can't understand my poor english, probably my fault... don't give me the clown that's very rude

[@AndrewLetendre]

VR headset?

[@RosanaR2011]

@@jin6000nope! 15 billion in net income for All of 2023

[@musa7606]

If someone has learned anything from Tesla, Lucid and Rivian, making cars is hard. Leaving behind the money dump that is the Apple Car is a smart move.

[@christiandgreat8127]

Its hard but only tesla making money out of those bunch.. apple need to stay on their lane

[@hankmiller990]

Apple couldn't make a car. They did not have the knowledge to make one. Apple is a fail.

[@ziprun2005]

Sundar's time at the helm of Google needs to sunset soon. His leadership has been wholly unsatisfactory.

[@randallstephens1680]

Tim Cook is no Steve Jobs.

[@JT883]

Google did not "get it wrong" like some mistake was made. It was deliberately designed and intended to work as it did.

[@rightangletriangle3188]

Agree. I think AAPL should focus more on software development which commands better margin.

[@pokeedmund1016]

In addition, Google was the first one to mention about their AI program years ago, way before chatgpt etc, and still they messed up. Really do wonder if this year they will cut their headcount to make up for this mistake, or they replace Sundar with someone else.

[@danielwhite9581]

How does the discover/capital one transaction effect your thesis on Mastercard and Visa?

[@mattgargiulo3995]

Won’t affect v as much as it will Mastercard. Discover network is non-existent internationally.

[@TheMartinBalboa]

Breaking: Tesla reveils plans for a futuristic smartphone.

[@rawlvee]

lol

[@dogelife7901]

You sob I'm in.

[@rakebullet5200]

Google are not being responsible, they are being manipulative.

[@RussAbbott1]

The only way EVs would have made sense for AAPL wrt margins is if AAPL partnered with a physical car manufacturer. In that case, AAPL would have high margins since it wouldn't have had to pay for automotive manufacutiing. Its costs would have been only in the software, producing much higher margins.

[@mua2]

Just to be clear, Elon claimed that Tim Cook wouldn’t take his call to discuss an acquisition, he never claimed that they actually met and discussed the topic. That said, Elon has never been the most truthful guy.

[@CombuskenKid]

Good. Self driving cars are a red herring and stupid, I don't think it will ever be a thing or if it will it certainly won't be in our lifetimes. None of the current self driving tech works as intended, it's a gimmick at best and will stay that way for a very long time.

[@lovedeep1528]

5 Year Returns: Joe: 29% Return All Time (~5 Years) QQQ: 22.40% SPY: 14.21% Just to put things into perspective for the viewers.

[@JosephCarlsonShow]

I get what you're trying to do here, but just remember that simple returns are different than rate of return. I added a lot of capital (100k) to the portfolio in 2023, and capital in 2022. So I've been adding to the portfolio over time which throws off the simple return metric. This is why most brokerages use rate of returns (like time weighted) which is what I calculate every month and yearly now.

[@Clixlol]

That is not correct 5 year returns. Maybe CAGR?

[@Dillingham-]

5Y Returns According to Seeking Alpha: SPY: 81% BRK.B: 103% AAPL: 315%

[@matthew.charles]

AAPL dropping their EV project is great news for the company IMO. I never liked the fact that they were trying to develop their own EV. Agree with you 💯! I think focusing on their AI efforts with really help accelerate their efforts in increasing their service revenue as a company and continue to improve operating margins.

[@AoCabo]

In a gold rush, sometimes it can be more profitable to sell the tools. Making cars is hard and the margins aren't that good. Apple can get exposure into the car industry with software/services.

[@supercruchynoodle]

Giving up an electric car is the best decision they made. Those car batteries are not recycled and Tesla has that problem

[@delliott777]

Making cars is a very difficult business. Smart phones are hard enough, but there are more suppliers involved (higher probability of interruptions), and not to mention all the regulations and recalls that the car industry faces. It’s easier to buy a new iPhone than a new car. I’d love to see an Apple Car, but it’s a good call.

[@drupatel5131]

Apples not giving up on cars because cars are low margin. They're leaving cars because auto pilot + long range evs are still quite far based on current best products. Once its a fairly solved problem they'll enter in. Just like they entered in after smart phones, computers, Bluetooth earphones were fairly solved problems. Low margin of 80000 car is still a lot of earnings.

[@Ng19899]

That’s the problem with big tech being so woke it’s like they don’t even realize how far it’s gone until it’s too late. No excuse for a google to put out a product like that.

[@MikeSnedaker]

Too many non-qualified DEI employees.

[@Ng19899]

@@MikeSnedaker 100%

[@scramptha5949]

Honestly the most surprising thing from this video was that Late Night with Seth Myers still exists, I haven't heard anybody mention that show in years...

[@InfoRanker]

Apple was wise to give up on the car. That would have been a big money loser.

[@slob5041]

It's why vision pro sales don't really matter that much. They just need to look like they're doing something cool to keep the stock up.

[@samual8299]

Sundar’s “apology” was pathetic. It reads more like a self-promotion with a limp apology attached. Let’s be clear about one thing, if their AI was all but refusing to portray black people, he would be on his hands and knees begging forgiveness. Not to mention there’s NO possible way they didn’t know their AI was grossly racially biased going in. They knew the product and moved forward with it because they thought it discriminated against the correct group

[@Libertyfirstrye]

Exaclty they discriminated but the only reason why there’s outrages is because they had black people as nazis and other wrong doers they over represented black people way to much but they only care about making black people look bad in there over representation nothing else

[@DavidGarciajrtx]

Why would Tim Cook want to admit that he turned down Tesla? Like Ross said that hundreds of billions that Apple investors missed out on

[@bjrn2010]

This was the whole point when Google spend more time on their AI, they wanted it this way, they just went a bit further than they could get away with.

[@Xairos84]

If apple got into cars everyone would lose their minds if they had to take it into a genius bar for an oil change. Apple doesn't let people do anything to their devices

[@jray5363]

With the Apple emblem on the hood, they would be priced at $150,000+!

[@georgesontag2192]

Apple can see sales of EV cars are not growing as expected. EV cars have limited range, horrible cold weather problems, prices are dropping, batteries burn, charging stations dont work all the time. The market has already peaked.

[@gaba023]

Headline should have been "Apple Pulls the Plug on Electric Car Effort, Employees Moved to Energize AI Effort."

[@kohnfutner9637]

As a Gemini, I'm annoyed they created a lying AI and called it Gemini. Should've called it Obamessiah. 😂😡

[@JohnDoe-iv7yu]

"Apple, we make phones, and that's it!" - Tim Cook

[@limxin0014]

Makes more sense for Apple to go deep into AI than into EVs to be honest. It's all about strategic investments and taking on + NPV projects.

[@pupeEETR]

Gotta be honest- don't really find chat gpt to be very accurate. They picked the nets to make the nba finals, and lack knowledge of historical events as well. Both are HUGE works in progress

[@keepitraw1]

Do a debate about current earnings and new buys in VICI please, currently at my original positions price and want to buy more. Not sure if i rather buy O or both.

[@Jayvazquez15]

I’m bullish on VICI right now after the latest earnings show good growth year over year!! Great video as always!

[@Libertyfirstrye]

Ayye my man

[@Jayvazquez15]

@@Libertyfirstrye yes I’m a fan of this channel😃

[@AquaTerra77]

I’m glad Apple dropped that loser of a project.

[@dogelife7901]

Apple had a hard time making an exclusive charger, exclusive tires, exclusive driveshaft, and exclusive window controls that could be sold separately. Who wouldnt pay $10,000 for each iTire?

[@Link-we8so]

Evidently Google hasn't been doing much with all the r&d spending

[@Merritt2323]

Some good news for my Tesla shares!

[@JosephCarlsonShow]

I think it is objectively good news for Tesla that they don't have Apple as a competitor.

[@EamonnMurphy-cc1dt]

The big story here is that Apple failed at Autonomous driving which should be high margin, it is after all, just mostly software . Tim Cook said himself 'autonomous driving is the mother of all AI projects'. I suggest if Apple succeeded in being first to get to Autonomous driving, there would be very little remarks past on the margins of their vehicles. They would make most of their money licensing the software.

[@ramonburchell6366]

The car industry is fickle,, It’s for the best for Apple not to get into the car industry

[@o0usf0o]

Again, Google is now Hooli

[@evajiang4444]

I just joined the Patreon. How can I get the discord link from you?

[@Foxyfreedom]

Apple stole the pulse oximetry tech

[@sshumkaer]

If David Thompson was alive he would of never did that

[@shadowninja6689]

I've been saying for years that Apple building an EV never made sense, they'd have been much better off trying to sell software/hardware to other automakers (including self driving if they could get it to work). Apple was simply WAY too late to get into the EV market in the first place, it would taken over a decade for them to make EV's at scale and profitably. And Tesla is basically already the Apple of the EV market, if Apple wanted to have any chance at topping Tesla in EV's they had to get into the market at scale before Tesla release the Model 3 and Y.

[@bigmoo9470]

Excellent point about Wendy’s lowering prices at quiet times, shame the highly paid execs at Wendy’s didn’t have the brain power to think about proper communications!

[@Aurelius_X_]

Not surprised, the being in the automotive industry is tough.

[@alexandrumates88]

Best decision ever. If they really wanted to get in they could have just bought a legacy Oem. But leaving is even better. The liabilities with cars are very high.

[@tuckyew3633]

I think Apple saw the price war occurring in the EV market between major players such as Tesla and BYD, and they decided that eh screw it the EV business is not worth getting into at this point. So good decision by Apple to scrap their EV plans, which could have negatively impacted their margins.

[@KCAATV]

Well, I suppose Google's screw up explains some Mandela Effects, but certainly not all of them.

[@vrlsharma3]

The Arguement of having low operating margin in car industry does not make sense after 10 years of starting a car project. Does it ? 10 Years of wasted potential and operation cost !

[@lynellefson1230]

With record cattle prices it's hard to believe that Texas Roadhouse would be doing so well, but kudos to you.

[@o0usf0o]

It honestly feels like people want to complain about rising costs and inflation… then proceed to pay whatever it cost.

[@RandomGuyOnYoutube601]

Of course Tim Cook "does not remember".

[@sitarang07]

Rather than celebrating Elon should be thinking about his new ruse to convince investors that Tesla is a tech company, Apple leaving the market implies people don’t want to adapt cars as tech

[@o0usf0o]

To me, it looks bad for the car market… especially EVs. Too many companies doing it now.

[@dominiquetheeasyminimalist]

I consider Tesla like a FWB, it's just a car company with benefits 😆

[@mario3454]

I think that was a great move by Apple. Maybe Apple can invest in Rivian. Google CEO needs to be fired. He’s lucky Alphabet is a great company making billions ran by simple minded people like him.

[@tyjameson7404]

AAPL can’t keep up with TSLA they are thirteen years to late ⏰ 👍🙌🏾🙏❤️🇺🇸💪🏾😎thank you Joseph 🙏🙌🏾

[@realmusicmatters]

Tim Cook lying 😂😂😂he know he had that meeting he just dont wanna look stupid for passing on Tesla

[@couldntfindafreename]

I guess Apple just could not fully solve FSD and finally admitted the failure. It also helps them getting rid of the related regulatory risk and the heavy competition of Tesla.

[@Playingwithproxies]

Yeah Wendy’s answer is kinda bs what they were going to do is raise the price of the whole menu and then lower prices slightly when they weren’t getting high enough traffic to try to drive up demand.

[@kingtigercrownestate9102]

This is probably only a delay not a permanent cancellation of the Apple car if E.V.S really start to become the accepted norm that everyone is buying Apple will get this project going again.

[@DapaChrons]

As a Tesla investor, Ross Gerber is a hack, never liked seeing his name anywhere near Tesla

[@JD..........]

Theres no mainstream EV project until brand new technology is discovered. Lithium cant cover it.

[@dogelife7901]

GOOGLE we dont know what went wrong. weve never put diversity equity inclusion over every other useful aspect, this is truly a mystery.

[@hundehus]

Ahaha great thumbnail!

[@JIYkp]

No, Tim Cook would not even _meet_ with Elon. That's why he doesn't remember

[@T_P_343]

How much do you add weekly/ monthly to the account?

[@burtbed4547]

Joseph. Thanks for your videos as usual. I remember you saying how excited you were about the Apple potential car. I guess you changed your mind.

[@lawrencethomass816]

That response by google is about as accurate as it AI! They went woke ! No way I buy anything google ! And I am lessening my KZbin views as much as I can!

[@send2dwight]

EV is low margin until the AV switch is flipped. Apple was never pursuing this to sell hardware! It’s always been about the software/AV revenue, like Cook said. #holygrail

[@Darudo_sandstorm]

What Apple should make is smart glasses. There is a lot of money to be made in this business.

[@markarnoldsfinance2765]

We shall call it “Dynamic Inflation”..

[@matejsvec4451]

General rule of thumb, if it is not related to core of their business, it doesn't matter. unless they pour money into it like Zuck into Metaverse

[@carsonc1272]

Joseph - Elon called to talk to Tim Cook but Tim declined the call. There wasn't a conversation. When this happened Elon wasn't as famous as he was today and it was likely Elon on one end of the phone and Tim's secretary on the other end of the phone. Depending on how the secretary brought it up to Tim it's easy to imagine that this wasn't a memorable event.

[@baneinvestment917]

I think you need to do a video on Vici. Fundamentals vs performance

[@iamjacquesbarjon]

Operating margin % shouldn't be the target. You can have 16% operating margin on $1B of sales and that's worse than 10% operating margin on $2B.

[@lacreta44]

Hello Joseph, which day of the week do you buy stocks? And what’s your preferable time?

[@Joao-pm8je]

Did you just compare the gross margin of a 47 year old company with that of a 20 year old company who is far from maturity?

[@xX1GuNNy1Xx]

Does anyone know how old Joseph is? Has to be 30-40?

[@zvonimirbuconjic9184]

You realize Apple didn't go just for car, they went for autonome, there are software like margins.. and thats where Tesla heading.

[@pititflo1572]

Love your content!! Can you please do a video on SCHG and why you choose that ETF solely for your Roth IRA..? Thanks

[@eatlaughandstupid4430]

there are three billion videos about SCHD. The world needs one more.

[@dwightschrute7342]

It’s just a solid set it and forget it low cost growth etf

[@pititflo1572]

@@eatlaughandstupid4430 excuse me, but I asked Joseph to explain why HE chose to buy SCHG not SCHD. I know there are many other videos talking about SCHG and SCHD, but wanted to know his opinions. Mind your business sir!

[@o0usf0o]

Large cap growth etf that he doesn’t have to think about.

[@108-wisdom-life-game]

I wonder why you said you are bullish on Google while you are not holding the stock

[@Particle_Ghost]

Where never was an Apple Car lol.

[@dzfromtheburgh5725]

Yeah they never released it. They were still designing it.

[@u263a3]

It was CarPlay all along

[@o0usf0o]

@@u263a3always was 😅

[@dogelife7901]

Yes it was a project. they probably saw they couldn't charge 1 million per car after the sales of their goggles and bailed on it.

[@PhongNguyen-nz9kz]

Your account is just booming.

[@Roan-xj1mg]

I like how some of these invincible companies learn about their boundaries

[@michaelswami]

They didn’t need to be involved in a capital intensive industry.

[@LZin-uk5nh]

NVDA up 61%

[@dogelife7901]

What goes up

[@gamers542]

Strong disagree on your AAPL thesis with the EV loss. So you can't keep the 30%? no big deal. Yeah you are going to lose some operating margins with EVs, but AAPL is so big and diverse that their margins will be fine. More EV competition is welcome and as an AAPL shareholder, i find this news disappointing. A bit of greed in your reasoning imo.

[@thebigbucktheory5488]

What about the stock rallying after the news? Seems like a lot of people were in favor of them pulling out.

[@johnmcquaid7524]

Capital Light is part of my New Years Resolution. 🚴🏻 🇨🇦 Mr Beast will save Alphabet.

[@CristianHernandez-312]

I guess now we know why Buffet sold Apple $APPL shares.

[@Joe-nx7nj]

Texas road house

[@Purplebass]

Apple has an iPhone iPad Apple TV desktop computer laptop but they never made a stereo screen gadget for a car. They could’ve done that before the iPhone was even made they could’ve had their logo in every car in America if they had just made stereos for the cars

[@dennty75]

Isn’t Apple still the majority shareholder of EVTOL company, Joby Aviation?

[@carlsen9512]

Is it too late to buy Texas Roadhouse?

[@175924]

It was a bad idea right from the beginning and a waste of resources

[@sublyme2157]

It makes more sense for Apple to buy Disney