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AAPL Stock on Rise after Latest Reports on Self-Driving Apple Car Plan

UTC by Kofi Ansah · 3 min read
AAPL Stock on Rise after Latest Reports on Self-Driving Apple Car Plan
Photo: Shutterstock

Apple (APPL) saw a 1.2% gain on December 21, just an hour after the company announced their car plans. Its share further went up by 2.75% on that day and rose to 4.8% on December 22, trading at a $131.88 close.

Apple Inc (NASDAQ: AAPL) stock is the latest flaming commodity on the stock market as news broke about its plan to produce a self-driving car which according to them should be available by 2024. Apple (AAPL) rose as much as 4.7% on Tuesday following reports that the tech giant was moving ahead with its automotive dream. The burst was the highest level Apple stock had reached since the early days in September. 

Apple (AAPL) saw a 1.2% gain on December 21, just an hour after the company announced their plans. It’s share further went up by 2.75% on that day and rose to 4.8% on December 22, trading at a $131.88 close. Apple’s market value has since seen gains of over $102 billion at intraday highs, with its market cap up over $2.25 trillion, the largest valuation of the market. 

Apple stock started the first trading day in December by trumping over the November high and downward resistance. However, shares scraped below October’s high at $125.39 and 61.8% retracement up until the last 7 days leading up to Tuesday’s rally. Bulls are now trying to retest the high of September, which was just shy of $138, also a few dollars above Tuesday’s high.

Apple have revealed plans to compete in the electric car market and have their eyes set on 2024 to produce their very first autonomous vehicle. The company is reportedly ready to partner with other companies for some of the system of its vehicle and is creating new battery technologies that will improve the safety and range of the vehicle. Apple is also rumored to be experimenting with lithium-iron-phosphate battery chemistry, in a bid to produce less costly batteries that could also be less likely to overheat than lithium-ion batteries.

Analysts at Odds over Apple (AAPL) Car Plans

Apple’s recent engagement with the media over its rejuvenated electric car plans has been met with a wide range of diverse reactions from Wall Street analysts. Some analysts are optimistic about Apple’s new decision as it would mean a large new market for Apple in the electric-car business. Other analysts however have doubts and have questioned Apple’s decision as according to some, a car from the tech giants “could run into the reality of the car business: heavy investment for low margins.”

Analysts from Morgan Stanley stated that Multi-billion dollar companies such as Apple are looking way beyond just the monetary gains of producing a vehicle. According to them, a break into the electric car industry could create a “captive audience” of people who are going to ride in those vehicles as their time could also be monetized. The Adam Jonas led team speculated that there could be an estimated 600 billion hours of times spent in those electric cars annually. 

Amit Daryanani, an analyst with Evercore casted some doubts over Apple’s decision to go into what he described as a “low-margin capital-intensive car business. He however added that the project could be a reality if Apple had already been successful with their new battery as well as its self-driving technology. 

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Kofi Ansah
Author Kofi Ansah

Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.

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