14 days ago
Apple V. Tesla: Probably, Apple Will Make a Car, Says Morgan Stanley
Morgan Stanley’s Katy Huberty, who follows Apple (AAPL), today follows up the remarks by her colleague Adam Jonas, analyst covering Tesla Motors (TSLA), about what Apple’s investment in “autonomy” writ large means for the the future of self-driving car competition. Yesterday, Jonas wrote that Tesla faces “serious competition” from Apple, among others, as my colleague Ben reported. All this, of course, comes from an article yesterday by Bloomberg’s Alex Webb and Emily Chang in which Apple chief Tim Cook told the reporters that his company is working on making “autonomous systems,” without specifically saying Apple will make a car or car-navigation system, or the like. Huberty, who maintains an Overweight rating on Apple stock, and a $177 price target, writes that knowing Apple, they won’t stop at some general self-driving-car software, but will build a car: From the Apple perspective, core self-driving software is likely the first step in its autonomous pursuits, and we believe Apple will eventually move beyond just software into designing a full car and/or launching a platform for third party services and content over time.