Topline
Apple stock rose 3.04% to a new intraday record of $158.32 in early afternoon trading Thursday, following a Bloomberg report that provided the most detailed information yet on its secretive and highly anticipated electric vehicle program.
Apple is preparing to enter the automotive market. (Photo by Alexander Pohl/NurPhoto via Getty … [+]
Key Facts
Bloomberg, citing several anonymous sources, reported Apple is shifting its automotive focus to creating the “holy grail” of cars: fully electric, entirely autonomous vehicles.
Apple is also now targeting a 2025 release date, far ahead of its previously expected timeline, according to Bloomberg.
The cars reportedly will feature “no steering wheel and pedals” and seamless integration into the company’s many devices, including an “iPad-like” touchscreen.
Key Background
Apple’s vehicle project is an open secret at this point, but the company has shied away from publicly confirming it is planning to enter the vehicle market. In April, Apple CEO Tim Cook declined to confirm Apple’s car plans, but hinted at the possibility, saying “We’ll see what Apple does.” The company declined to comment on the Bloomberg story.
Crucial Quote
Wedbush analyst Dan Ives said in a note to clients Wednesday: “We continue to believe it’s a matter of when, not if, Apple enters the EV race and this will add another $30+ per share of TAM to the Apple growth story over the next few years…. We would assign the chances of Apple unveiling its own standalone car by 2025 as 60%-65%.”
Further Reading
Apple Accelerates Work on Car Project, Aiming for Fully Autonomous Vehicle (Bloomberg)
Here’s What an Apple EV Could Look Like Based Solely on Its Existing Patents (Robb Report)
