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Apples reported a foray into manufacturing its own self-driving electric cars creates “a new You’re here bear case, ”according to analysts at Morgan stanley.
Tesla shares fell as low as 5.5% on 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 recession also follows its admission in the benchmark S&P 500 before opening Monday.
“Apple’s potential automotive entry represents perhaps the most credible / formidable bear case for Tesla stock that investors have had to consider for some time,” the analysts wrote on Tuesday. by Adam Jonas in a note. Jonas gives Tesla an equivalent purchase rating with a target price of $ 540, about 15% below where it is currently trading.
The iPhone maker entering the vehicle market could also pose a threat to traditional automakers such as General Motors and Ford engine, which will struggle to compete if “Apple were to really shed its weight,” Jonas said.
For providers of electric, autonomous and connected car systems, Apple’s plans “could very likely mean a significant shift in the speed and scale of a wide range of investments,” he added. . Lidar vendors include Luminar Technologies and Velodyne Lidar rallied on Monday after the report and continued to rise on Tuesday.
More to read absolutely technological coverage of Fortune:
- CEO of Intuit in connection with $ 7.1 billion acquisition of Credit Karma, reorientation towards AI and re-qualification of workers
- Comment: Uber and Lyft’s broken business model is takes a heavy toll on society
- Head of WarnerMedia Studios on controversial decision to release new movies on HBO Max
- Air Force AI test increases concerns about killer robots
- Comment: The web must change its economic model if he wants to become truly global and multilingual
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