How Apple making cars possibly effect Tesla

  • It could well be the clash of two mega giants as Apple reportedly plans to roll out its first-ever passenger vehicle to take on the might of Tesla.
  • Apple car could debut as soon as 2024 although the tech giant is keeping all details under wrap.

People in the know say while Apple is working overtime on its car, pandemic-related factors may push production to 2025 or beyond. (REUTERS)
People in the know say while Apple is working overtime on its car, pandemic-related factors may push production to 2025 or beyond.
Get Launch Updates on
Notify me

Apple Inc.’s reported foray into making its own self-driving, electric cars creates “a new Tesla bear case," according to analysts at Morgan Stanley.

Tesla Inc. shares fell as much as 5.5% Tuesday, adding to their 6.5% drop on Monday, after Reuters reported that Apple is moving forward with autonomous technology and aims to produce a passenger vehicle by 2024 that could include its own battery design. Tesla’s two-day slump also follows its admission into the benchmark S&P 500 Index before the open on Monday.

Also check these Cars

Find more Cars
Tesla Model S (HT Auto photo)
UPCOMING
BatteryCapacity Icon100 kWh Range Icon570 km
₹70 Lakhs - 1 Cr
Alert Me When Launched
Tesla Model 3 (HT Auto photo)
UPCOMING
BatteryCapacity Icon82kWh Range Icon 555 km
₹ 40 Lakhs
Alert Me When Launched
Hyundai Kona Electric 2024 (HT Auto photo)
UPCOMING
BatteryCapacity Icon64.8 kWh Range Icon418 Km
₹ 25 Lakhs
Alert Me When Launched
Hyundai Kona Electric (HT Auto photo)
BatteryCapacity Icon39.2 kWh Range Icon452 km
₹ 23.79 Lakhs
Compare
View Offers
Tata Sierra Ev (HT Auto photo)
UPCOMING
BatteryCapacity Icon69 kWh Range Icon420 Km
₹ 25 - 30 Lakhs
Alert Me When Launched
Mg 4 Ev (HT Auto photo)
UPCOMING
BatteryCapacity Icon64kWh Range Icon350 km
₹ 30 - 32 Lakhs
Alert Me When Launched

“Apple’s potential entry into autos represents perhaps the most credible/formidable bear case for Tesla’s stock that investors have had to consider for some time," analysts led by Adam Jonas wrote in a note Tuesday. Jonas gives Tesla a buy-equivalent rating with a $540 price target, about 15% below where it’s trading currently.

Also Read : Elon Musk says Apple CEO had refused to meet him over Tesla sale

The iPhone maker getting into the vehicle market could also pose a threat to legacy automakers like General Motors Co. and Ford Motor Co., which will have a hard time competing if “Apple were to really throw its weight around," Jonas said.

For suppliers of electric, autonomous and connected-car systems, meanwhile, Apple’s plans “could very likely mean a significant inflection in the speed and magnitude of a wide range of investments," he added. Lidar suppliers include Luminar Technologies Inc. and Velodyne Lidar Inc. rallied Monday after the report and continued to rise Tuesday.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.

First Published Date: 23 Dec 2020, 09:04 am IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.