Only 3 Car Companies May Survive, and it's Not Who You Think

Global Equity analyst Trip Chowdry made a bold claim in his latest research report on the Car industry. If his thesis plays out it could mean the demise of traditional automakers.

According to Chowdry, 5 to 10 years from now, there will only be 3 players in the New Auto Industry: Tesla (NASDAQ: TSLA), Apple (NASDAQ: AAPL) and Ferrari (NYSE: RACE).

Chowdry claims the rest of the auto manufactures like GM (NYSE: GM), Ford (NYSE: F), Fiat (NYSE: FCAU), Toyota (NYSE: TM), BMW, Mercedes and others will experience their Nokia, Blackberry and Motorola moment.

"Just like in 2007, the launch of iPhone started the end of the old guard - Nokia, Blackberry, Motorola etc; remember, during this time, the killer app was downloading of ring tones - how banal was that...," the analyst commented.

".... Post 2007, led to the emergence of only 2 players, who came from no-where: Apple iOS and Google Android; similarly we are seeing initial indications of massive shift within the Auto Industry - Which will be led by both Tesla and Apple; while Ferrari will be providing the initial "Performance" and "Design" benchmark for both Tesla and Apple Cars," he added.

Chowdry said no one will care about BMW's "Ultimate Driving Machine" in a world which is moving towards ADAS. He said it is the equivalent of handset makers saying "We have maximum ringtones to download on our phone" pre 2007.

Commenting on rumors Faraday is a front for Apple's EV project, the analyst said it not. He said Apple Car Design initiatives are likely in Sunnyvale and the factory will very likely be in San Jose. He also said Faraday is the next Fisker. "... it is not about EV or features, it is about Industry Creation, which only Tesla and Apple can probably do...."

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