Every so often, great companies make terrible mistakes. They don’t seem like mistakes at the time. Often, the decision is cheered by all when first announced. Only later, as problems pile up, does it begin to dawn on a company’s executives that… “Gee, maybe this wasn’t such a good idea.”
That’s what I think is destined to happen to Apple Inc. (Nasdaq: AAPL) with its recently announced plans to build an Apple electric car, otherwise known as an EV.
In fact, CEO Elon Musk claims he offered to sell Tesla Inc. (Nasdaq: TSLA) to Apple some years ago during the worst of its growing pains. Musk said he couldn’t even get a meeting with Apple CEO Tim Cook.
During the darkest days of the Model 3 program, I reached out to Tim Cook to discuss the possibility of Apple acquiring Tesla (for 1/10 of our current value). He refused to take the meeting.
— Elon Musk (@elonmusk) December 22, 2020
So why would Cook be looking to build an Apple EV now?
I interviewed some of the top CEOs in the world in my former life as a financial journalist. They never admit it, but they’re as susceptible as any ordinary person to FOMO — fear of missing out.
In the case of Cook, he passed on investing in Tesla, whose stock became a huge winner the past year (Tesla opened 2020 at $86 a share and will end it near $650). Meanwhile, the pressure builds for Cook to “do something” — like float the idea of an Apple EV — and hope for a similar splash with his company’s stock.
If you wanted a clear-cut reason to sell the stock — and I mean sell it and don’t look back — this would be your moment. You’ll get a price near an all-time high for a company at “peak valuation,” and at a level of enthusiasm for its shares I think is unlikely to be rivaled again for a long time.
I understand why people might think an Apple EV is a great idea. Electric vehicles are basically rolling technology platforms with a few big batteries and massive amounts of computing power stacked on top.
Apple, as a premier tech company, would seem pre-ordained to be a clear-cut winner once it starts production of an EV, slated for 2024.
I mean, if Tesla can build an iconic EV, why not Apple?
Check out my short video and let’s delve further into why the Apple EV is a bad idea. Then share your thoughts below.
Many people may not know this, but the most important work traders do happens before the opening bell each morning on Wall Street…
Premarket trading helps investors and speculators develop a plan of action for that day to stay ahead of this crazy and unpredictable market — which I think is a bubble.
And lately I’ve been receiving helpful tips and tricks from the world’s No. 1 premarket trader — alerting me to trades based on signals happening before the opening bell.
If you’d like to get in on these trades, too, just click on the button below!