Apple is king of technology, but how should shareholders view the company’s possible jump into cars? CNBC’s Jim Cramer views it as icing on the apple pie.
“An electric vehicle merely gives you one more reason to own Apple, not trade it,” the “Mad Money” host said. “Hopefully, everyone will forget this story tomorrow and the stock will sell off, giving you another chance to buy into weakness.”
Cramer was responding to a Monday story published by Reuters saying that the iPhone manufacturer was still planning on jumping into the electric-car business in the near future. The story said Apple is eyeing 2024 as the year it could potentially begin production of the vehicle.
Investors responded to the news favorably, with the stock trading up almost 3%. That gave Apple the largest valuation on the market, with a more than $2.25 trillion market cap.
“We know Apple likes to disrupt big end markets, [and] it doesn’t get any bigger than the auto industry,” Cramer said. “If there’s anyone who can give Tesla a run for the money, it’s Tim Cook and his team at Apple.”
Tesla and Apple were apparently close to becoming one, if Elon Musk had been successful in securing a meeting with Apple CEO Tim Cook. Musk tweeted out Tuesday, “During the darkest days of the Model 3 program, I reached out to Tim Cook to discuss the possibility of Apple acquiring Tesla (for 1/10 of our current value). He refused to take the meeting.”
Cook must have been busy looking at bra-shaped Smart Case prototypes for the company’s new AirPod Max headphones. It probably won’t be the last time a bra was involved in a bad business decision or missed meeting.