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Apple and Tesla are locked in an employee poaching war, and Tesla is winning

[youtube https://www.youtube.com/watch?v=W6XS6HE178I]
Former Apple Mac Engineer Doug Field gives our Seth Weintraub a test drive of the new P85D 

Perhaps annoyed by Tesla’s persistence in picking off its engineers, Apple is attempting to win over some of the electric car maker’s employees with signing bonuses of a quarter-million dollars and salary increases of up to sixty percent, Bloomberg revealed today.

Teslas parked at Apple’s Campus

In the past, Tesla has managed to poach a significant number of Apple’s designers and engineers for its own products—more than 150, according to Bloomberg. Some employees have pointed to Musk, who is often compared to Apple co-founder Steve Jobs, as one of the key factors in their decision to jump ship. Perhaps that’s why so many seem to be jumping ship to work at Tesla?

But it seems Apple is ready to get back some of those workers. Musk says that Apple “tries very hard” to lure engineers back to Cupertino, but has had very limited luck so far.

Some may point to this as evidence that Apple wants to get into the car industry. Just a few days ago, Apple was reported to have leased several minivans that were spotted rolling through San Francisco and elsewhere with an array of cameras. While some individuals claimed that these were prototype self-driving cars, it seems more likely that Apple is working on a Street View-style mapping system.

A more logical conclusion might be that Apple simply wants to recruit talented engineers and designers—like those at Tesla—to work on its lineup of computers and mobile devices. After all, no one looks at Tesla’s poaching of a computer engineer and assumes that company is going to dive into the laptop market.

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Comments

  1. iWagsz (@Iwagsz) - 9 years ago

    Lets face it. Tesla is the more innovative and exciting company.

    • Gregory Wright - 9 years ago

      You’re comparing an automaker with an electronic giant?

      • Gnoxy Bluestack - 9 years ago

        Tesla is more of an electronics company than apple. Their device OS crashes less for instance and lets face it, apple’s only new innovation has been the exiting new colors for your phone.

    • Gazoo Bee - 9 years ago

      Bull. Complete bull.

      It’s not innovative to make electric cars, it’s been successfully done since the 1970’s. The battery technology isn’t innovative either, it’s basically just a giant laptop battery, but in a car. that’ pretty much the entire extant of the innovation here. They were the guys that thought “Hey, why don’t we make an electric car, but with giant laptop batteries instead of the regular ones?”

      Tesla is a single product, niche product company. They make electric sports cars for rich dudes. Period. It is practically the opposite of an innovative or exciting company.

      The reason Apple employees are moving to Tesla, and the reason why it’s hard to get them back is basically just money. When you make a single, niche product for rich dudes, you have a license to print money. Everyone at Tesla is making money hand over fist, (because they make freaking electric sports cars for rich guys!).

      • Ahem.

        Allow me to refute your entire post, sentence by sentence.

        “It’s not innovative to make electric cars, it’s been successfully done since the 1970’s.”

        Isn’t that the whole point of Apple? It’s not like there weren’t any phones before Apple, and it’s not like there weren’t any smartphones before Apple: Apple just made a product that was much more exciting and innovative than any of their competitors. That’s exactly what Tesla’s doing.

        “The battery technology isn’t innovative either…”

        Tell that to Nissan, Chevy, BMW, and ZAP. Matter of fact, why don’t you tell me what you think the killer feature of the iPhone is? Perhaps it was magically leaps and bounds better than anything else on the market?

        “Tesla is a single product, niche product company.”

        Aha, but they’re TRYING to become a multi-varied, multiproduct company. Back in the 70’s, Apple didn’t have a giant product line of their own. They just had a single, niche product for hobbyists (don’t tell me the Apple I wasn’t niche, because the general public sure as heck didn’t know what to do with computers back then).

        “They make electric sports cars for rich dudes.”

        Allow me to direct you to the 2010’s. Swedish House Mafia isn’t together anymore, Robin Williams and Nelson Mandela are sadly no longer with us, and Tesla DOESN’T MAKE SPORTS CARS. For heaven’s sake, if the Tesla Model S is a sports car, then I guess the Honda Civic serves the same purpose as a Mazda MX-5. (Hint: it doesn’t). Secondly, the price ceiling for cars that new Tesla owners are coming from is typically around $40,000. AKA not rich dudes. Perhaps financially stable dudes would be a better term.

        “It is practically the opposite of an innovative or exciting company.”

        O rly? (Pardon the use of Internet vernacular, but when the shoe fits…) If Tesla is not an innovative company, please tell me what companies you think are innovative. Wait, wait, don’t tell me. Apple? I’d like to hear one thing about the iPhone that another phone can’t do better (Please note: I’m not disparaging Apple or saying that Apple isn’t innovative, I’m just trying to figure out what this guy’s trying to prove).

        (This last paragraph is the really hilarious one)
        “The reason Apple employees are moving to Tesla, and the reason why it’s hard to get them back is basically just money. When you make a single, niche product for rich dudes, you have a license to print money. Everyone at Tesla is making money hand over fist, (because they make freaking electric sports cars for rich guys!).”

        Let me show you a few statistics. We’re going to compare revenue and profits for each company during the fiscal year of 2013 using, by method of arbitrary choice, the website Marketwatch. Observe.

        2013 | TSLA Annual Income (Revenue): $2.01B USD
        2013 | TSLA Annual Gross Income (Profit): $456.26M USD

        Now for Apple.

        2013 | AAPL Annual Income (Revenue): $170.87 USD
        2013 | AAPL Annual Gross Income (Profits): $63.63B USD

        As you can see, Apple makes roughly 85 times the revenue and 140 times the profits that Tesla does. The very article you just presumably read revealed that Apple is offering Tesla engineers 60% salary increases plus gargantuan signing bonuses, which would imply pretty heavily that Apple’s the one with extra cash.

        TL;DR: Gazoo Bee is full of hot air, and it would be very interesting for all of us if he could actually substantiate half of what he just said.

      • vandiced - 9 years ago

        Even the cleaning crew?

      • Mike Beasley - 9 years ago

        Weird, the employees Bloomberg talked to said it was about the fact that Tesla was innovative and exciting. Maybe you should inform those employees of their true motivations, as they apparently haven’t gotten the memo.

      • Dss33 (@Dss33) - 9 years ago

        I’ve never read a comment that was more inaccurate. Every single thing you just said is incorrect.

        1) Name one other successful electric car company or fully electric car. There aren’t any others.
        2) They actually have three models – the Roadster, the S, and the X. If my math is correct, that’s three products. And that doesn’t include all of their consulting services around powertrains, batteries, etc. for other car manufacturers.
        3) They’re actually not sports cars – they’re sedans (four doors, five passengers). The company also isn’t making that much money. Complex accounting aside, Musk recently noted they won’t turn a real profit until 2020. I’m sure the employees are paid well, though nowhere near as well as Apple’s best engineers.

        It’s obvious they want to work for Tesla because of the incredible vision and drive of Musk. Apple and Tesla are both phenomenal companies, each in their own right. That said, Apple made 18 billion dollars in profit last quarter. They clearly have cash to throw around whereas Tesla has nowhere near that much financial pull. For them it’s really about the CEO and where the company is going.

      • Gazoo Bee - 9 years ago

        Wow, so they’ve expanded to three slightly *different* sports cars for rich dudes. Interesting.

        For the record, many companies have come out with electric cars as I have noted, since the 1970’s. All were successful in terms of engineering (it’s literally a trivial thing to make an electric car), albeit all those companies eventually failed financially. All those other electric cars were arguably *more* innovative than the Tesla, given that they laid all the groundwork for cars like Teslas.

        All Tesla has done is target the rich southern Californian, and introduced their product at a time when the idea is “in the air.” The Tesla cars are luxury cars with sports car performance. In other words, custom made for little rich dudes who like to rev their motors and who can afford to pay the ridiculous prices.

        I realize that Tesla is very, very, very, popular with male geeks, especially those who work in the tech business and can afford one, or those that visit sites like this. None of that changes the actual historical facts however.

      • Ernesto Napoles - 9 years ago

        Complete Bull. Apple is the one printing money. Making more money that any corporation ever. Apple made $13.1 PROFIT last quarter while Tesla had ~$1.3B in REVENUE likely without a profit. Apple can pay more money. Tesla offers the opportunity to change the world.

        BEVs have not build sold successfully before. They have been microniche cars produced by microniche companies or in microniche numbers by the legacy automakers.

        Currently Nissan is selling the most electric cars globally. They sold a record 63k units. And they sold 5,000,000 gasoline and diesel cars.

        Tesla is making a single product today. It sold ~33k cars last year. By the end of this year it will make a CUV. SUV form factory with the efficiency and driving dynamics of a car.

        And by 2018 it will make a sedan starting at $35k.

        Tesla innovation is not batteries. They buy those from Panasonic. Tesla innovation is software battery and motor management. They make electric motors without rare earth metals. Unlike Nissan and GM.

        If everyone else could sell 33k electric sedans with an average selling price of $106k with 28% gross margins why don’t they?

        Answer? Either they are stupid or they can’t. Or both.

      • TechPeeve (@TechPeeve) - 9 years ago

        “The battery technology isn’t innovative either, it’s basically just a giant laptop battery”
        You sir, are a complete dumb ass and this statement alone shows that you know nothing about technology

      • I don’t know that you’ve driven, or even been in a Model S; they are stunning examples of technology from stem to stern. More importantly, from everything I’ve read and seen about him, Elon Musk is without a doubt the new Steven Paul Jobs … just with a bit of a nicer demeanour. :-)

        Gazoo, you said it yourself: “It’s not innovative to make electric cars”. Well, it wasn’t innovative to make an MP3 player back when the iPod was released. However, it was the capacity, interface, long-term vision and the overall walled garden of iOS that made it great. Mr. Musk is doing the same thing: he’s blown away others with the performance of his vehicles, and is creating a network of SuperCharger stations all while essentially open-sourcing his battery technology. What better way to make your technology ubiquitous and ensure the longevity of your product(s) and corporation? He’s bloody brilliant in the same way that Jobs was.

        As a former Apple employee (1991-1993 .. the awful Pepsi years :-) I would choose Tesla over Apple any day of the week.

    • Rich Davis (@RichDavis9) - 9 years ago

      Really? I don’t think so. yeah, so they figured out how to spit out a full electric car. But in terms of styling, the S model looks like a freakin Ford Fusion. For the amount of money they are charging, I’d want the thing to be more like a Mercedes, BMW, Jaguar or something else in the similar price range.

      As far as exciting? I don’t know, Tesla only has one model currently on their web site and another that isn’t shipping yet. I actually would be worried about Tesla since other competitors are coming out with full electric cars and they have more dealerships, bigger advertising budget, and eventually Tesla might have a tougher time because they might get crushed.

      • pjey357 - 9 years ago

        Remember, Ford ripped that off the Aston Martins without any shame for their Fusion.

      • florinnica - 9 years ago

        Mercedes and BMW cars are extremely ugly… And Tesla Model S DOES look like a jaguar.

        It is a matter of taste.

        I don’t think Tesla is worried about any other car company stealing it’s thunder.

    • irelandjnr - 9 years ago

      You guys are clueless.

  2. mpias3785 - 9 years ago

    Apple should buy Tesla and hire Musk as CEO of Apple.

    • rogifan - 9 years ago

      Why?

      • mpias3785 - 9 years ago

        Because Teslas are amazing and Musk is just brimming with ideas. Cook is a supply chain guy making Macs boring.

      • philboogie - 9 years ago

        mpias3785 says:
        February 6, 2015 at 6:10 am
        Because Teslas are amazing and Musk is just brimming with ideas. Cook is a supply chain guy making Macs boring.

        You must be right: I read your post on my Mac and got bored.

    • irelandjnr - 9 years ago

      Did you ever see the ugly giant screen in the S and the ugly software? Ever see how ugly PayPal is and how difficult it is to find oft-used features on there? You want the guy who
      OK’d that stuff running Apple? No thanks. He’s an amazing achiever, but he’s far from perfect regarding taste.

  3. Ario (@ArioYazdan) - 9 years ago

    I am boycotting Tesla

    • cdm283813 - 9 years ago

      Chances are you can’t afford one in the first place. But that’s only a educated guess.

      • Ario (@ArioYazdan) - 9 years ago

        I was just joking, but you’re right. I can’t afford it right now until I finish med school.

    • If you are boycotting because they are stealing Apple employees you need help. Competition like this is good for everyone. If Apple wants to keep their employees or attract new ones they have plenty of cash to do it, win-win for local economy in the Bay.

      • Ario (@ArioYazdan) - 9 years ago

        I know, you’re right; I was just being sarcastic. to be honest, I don’t really close my eyes and stay loyal to one company.

  4. bdkennedy11 - 9 years ago

    Apple is losing a lot of their talent as employees get sick of working 16 hour days. There are such things as expensive slaves.

    • You don’t think the people who work for Musk at SpaceX and Tesla put in long hours? Musk himself works very long days…. and has the expectation that those around him do the same.

      Don’t get me wrong, I admire the hell out of Musk. The guy is brilliant and is doing amazing things with his companies.

  5. rettun1 - 9 years ago

    I love what elon musk is doing with tesla, and all his other ventures.

    Maybe time to start 9to5Musk?

  6. Well, this is hard to read since Apple and Tesla are my most favourite companies in the world. It would be nice if they helped each other :)

  7. theoddshipp - 9 years ago

    That’s because tim cook only looks at his employees like they are numbers on a sheet, I left AppleCare earlier this year because of that. Times are a changing on the inside there and definitely not for the better.

  8. drhalftone - 9 years ago

    Apple relies too heavily on stock options. And with a stock price at an all time high, it makes total sense for an employee to cash in and move to a company with a much greater stock ceiling. The grass is always greener on the other side.

  9. houstonche - 9 years ago

    Really? No ones going to say it? Okay I will

    You know what apple should do to quit poaching? Call elon musk and agree to a mutually beneficial cease fire.

  10. miirek - 9 years ago

    Apple or Tesla? It’s a decision between estrogene and testosterone.