Apple must have grown tired of Amazon, Tesla and Peloton stealing all the headlines of their stock prices blowing up in 2020. On Tuesday, Apple sent shivers through the technology, automobile and financial epicenters of the world when news of their plans to produce an electric car by 2024 became public.
Wall Street responded in a huge way. Apple stock climbed as much as 4.7% Tuesday morning, growing Apple’s market cap by an astounding $102 billion. The reaction in the market started on Monday when news began to leak, and Tesla’s stock took a 6.5% dip, as obviously most consider Elon Musk’s company to be Apple’s chief competitor.
The report about Apple’s plan to invade the electric car market came as a surprise to some people, who had assumed recent layoffs and a management shakeup signified Apple’s “Project Titan” had died. Hardly.
It’s an incredibly ambitious plan for Apple and one that will require scores of new partners to assist them in handling the new supply chains that will be needed to produce, assemble, design and sell cars. “If there is one company on the planet that has the resources to do that, it’s probably Apple. But at the same time, it’s not a cellphone,” Reuters quoted someone who previously worked on the Apple car project.
Tesla spent almost 20 years building their cars before they were able to turn a steady profit, and now they are one of the most valuable companies in the world.