Apple shares soared Tuesday, following news of its plans for electric car production emerging the day before. At the time of this writing, AAPL was worth $132.90 a share, having opened the day at $131.61.
AAPL Rises as Tesla Stock Price Falls After Electric Car Rumors
In a note seen by Reuters, Evercore analyst Amit Daryanani wrote:
If Apple has achieved a battery breakthrough, this could serve as a driver to finally move forward with production given battery costs are one of the main obstacles to mass adoption of EVs.
Tesla stock traveled in the opposite direction from AAPL, falling a further four percent after a 6.5 percent drop on Monday. A note from Morgan Stanley Analysts said that “from a Tesla perspective, we have long felt that tech players like Apple (working with manufacturing partners such as Foxconn) represent far more formidable competition than the established/legacy OEMs.” Interestingly, it looks like Apple will be working with some new partners on its electric vehicles.
You’re Going to Have to Wait a Bit Longer For Your Apple Car
While all the news might be exciting to investors, perhaps don’t expect to be driving around in an Apple Car all that soon. “Initially, the most likely rollout would involve several hundred Apple Cars driving in U.S. cities for a year or two before becoming more widely available,” wrote Gene Munster of Loup Ventures. Indeed, Reuters also reported that Apple is in fact targeting 2024 for when it will produce a passenger vehicle.