Apple shares closed at a record high on Friday (11/19/2021), following reports that the company is accelerating efforts to launch an electric car with a self-driving vehicle project.
Apple shares closed up 1.7% at $160.55 per share. According to a full report from Bloomberg News, the company is pushing internally for the 2025 deadline for autonomous vehicles.
Apple’s entry into the electric vehicle industry puts the company in competition with Tesla as well as new players such as Rivian and Lucid Motors and traditional car manufacturers moving away from fossil fuels.
Electric Vehicle (EV) shares have surged in recent months as more consumers and investors bet on the hope of becoming the next Tesla. It is known, Rivian just went public last week, and made one of the largest Initial Public Offerings (IPO) this year. Rivian shares quickly outpaced the market capitalization of other automakers such as Ford and General Motors.
Regarding Apple’s potential entry into the autonomous vehicle, the industry has long been a topic of speculation. As for Morgan Stanley analyst, Katy Huberty has published two notes from Bloomberg regarding this matter.
The first press report to include a large amount of data, sourced from an Apple insider and providing reported details, on the idea that Apple’s car launch could accelerate the adoption of new technology (EV + AV) and expand the market that can be handled similarly to previous Apple product launches.
Huberty added that Apple’s entry into the industry represents a new endeavour for the company, where the company’s track record in new markets and its vertical integration capabilities can signify success
“He has a buy rating on par with stocks and says cars present the clearest path for Apple to double its revenue and market cap,” Huberty wrote.
Apple shares have gained 21% this year. Apple’s market capitalization also strengthened to a value of more than 2.6 trillion US dollars.
“We can provide a number of examples from the last 20 years that show while Apple may not always be first to market, its innovation engine, differentiation through vertical integration, and manufacturing/operational excellence have enabled it to leapfrog the first mover,” said Huberty.