Pras Subramanian, from Yahoo Finance, talks about a tie between Hyundai and Apple and Elon Musk at the top of the list of the richest in the world.
Video transcription
ADAM SHAPIRO: Now we have the news that Apple and Hyundai can start something new with electric cars. But then Hyundai says, not so fast. Subramanian Preas, save me here. And I hope I never have to drive that 1987 Hyundai again.
SUBRAMANIAN PRAS: [LAUGHS] Well, I want to see pictures of that car, Adam. But anyway–
ADAM SHAPIRO: I have pictures
SUBRAMANIAN PRAS: You know, interesting companions here, right, Adam? Earlier today, a Korean news network reporting that Apple had discussions with Hyundai about a partnership to make an autonomous electric vehicle. Hyundai actually confirming these conversations, but then reversing saying, you know what? We talk to all kinds of people all the time about potential cooperation and things like that for EVs. No decision has been made yet.
What’s interesting is that this follows this report a few weeks ago from Bloomberg, Mark Gurman there, talking about how Apple was really far ahead of its car efforts. For many years, we have heard that they are moving away from this. Gurman saying that there is a small team of engineers designing drive systems and body parts and exterior, interior, that kind of thing.
So, you know, we have these conflicting reports, but it seems to show that Apple is really moving forward. But we won’t be seeing anything potentially for at least half a decade.
JEN ROGERS: Pras, I have to be honest. When I saw that they could be joining Hyundai, I was a little surprised, because you don’t necessarily think about Hyundai when you think about cool, new and exciting things. But could this partnership – do you think it makes sense on some levels?
SUBRAMANIAN PRAS: You know, I think so. People may be asking, you know, what about GM? Or how about a Volkswagen, for example? But you know, Hyundai actually– we don’t know much about them here, but they are a big company in Korea. They are one of the most vertically integrated car manufacturers in the world. They are the largest steelmaker in Korea.
So, they do everything from transmissions to brakes, so they have big economies of scale that Apple could really take advantage of, because it’s cheaper to produce. They could control the entire production cycle of that car, so it would be an attractive partner for them.
ADAM SHAPIRO: I just need to connect Hyundai here, because that Hyundai Excel 87 that I had was a great car. And they used to redesign some of the cars they made. It was also the Mitsubishi- – I forgot his name, and the Dodge Colt. That’s how they overcame import quotas a million years ago. I want to ask you very quickly, Elon Musk now the richest man in the world. It faces no threat, it seems, whether it is an Apple-Hyundai partnership or an VW-Ford electric partnership. It looks like he’s in the lead.
SUBRAMANIAN PRAS: Yes, continuing with the EVs here, right? I mean, if your shares have gone up 20% in the last five days, 700% in 2020. Amid an 11-day winning streak, it shows that someone who owns 20% of the company is going to make a lot of money. Now, the numbers show that Musk has about $ 195 billion in equity, which is crazy.
The Tesla company is worth almost $ 800 billion, which is more than the top nine automakers combined. So I’m not surprised that Musk is where he is now. But you think about it, Tesla had a great year last year, right? Almost 500,000 cars produced. Profit in the last four quarters. So my question is, did Elon convert any of this to bitcoin? Has that ever happened? Would that have increased its net worth here?