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- Apple rose as much as 4.7% on Tuesday following a Reuters report Monday afternoon that the tech giant is aiming to produce electric cars by 2024.
- The company will aim to compete in the electric vehicle market with battery innovations that improve the safety, packaging and range of vehicles, according to the report.
- The news, released less than an hour before markets closed on Monday, lifted Apple to a 1.2% gain on the previous session.
- The rally saw Apple’s market capitalization grow by more than $ 102 billion in intraday highs.
- See live Apple trading here.
Apple gained 4.7% on Tuesday following a Reuters report the day before that the iPhone maker plans to produce electric cars by 2024.
The tech giant aims to compete in the rapidly expanding electric car market with new battery technologies that improve the safety and range of vehicles, according to the report. The advance will also “radically” lower battery costs, a source familiar with the plans told Reuters.
The rally saw Apple’s market value grow by more than $ 102 billion in intraday highs.
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The report lifted Apple shares to a 1.2% rise on Monday after being released less than an hour before markets closed. Tesla, likely to serve as Apple’s biggest competitor in the auto sector, extended previous losses and closed 6.5% lower.
Lidar sensor vendors rallied early Monday after sources told Reuters that Apple plans to partner with other companies for some vehicle systems. Apple developed its own lidar sensors for the iPhone 12 Pro and iPad Pro models.
The report revives conversations about Apple’s auto plan, known as Project Titan, after layoffs and leadership shake-up sparked rumors that the project had died.
The company plans to incorporate a “single cell” design that concentrates battery cells and creates more space in battery packs by eliminating multiple storage pockets, according to the report. The design allows for denser battery units and, in turn, a longer range than designs with looser cells.
Apple is also experimenting with the chemistry of a lithium iron phosphate battery, a new mixture that is less likely to overheat than lithium-ion batteries, Reuters reported.
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To be sure, even Apple’s expertise in managing massive supply chains is likely to be proven by vehicle production. Tesla spent nearly two decades building cars before making steady profits. Apple would need to collaborate with a host of new partners and venture into manufacturing processes that are not used in the production of its current hardware.
“If there’s a company on the planet that has the resources to do that, it’s probably Apple. But at the same time, it’s not a cell phone,” a person who worked on the car project told Reuters.
Apple closed at $ 128.23 on Monday, up 76% so far this year. The company has 75 “buy” ratings, 18 “hold” ratings and three “sell” ratings from analysts.
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