Morgan Stanley: Apple cars can double the company's revenue and market value
The hypothetical car designed by Apple may be years away, but it could actually help the company's stock, one analyst said.
Katie Huberty of Morgan Stanley wrote: “We see the prospects for Apple cars - the clearest path to doubling Apple's revenue and market value - spurring a shift in the investor narrative toward platform attractiveness and sustainable long-term growth.
Her comments follow an article in Bloomberg News on Thursday that highlighted a series of developments around the consumer electronics company's plans for an electric vehicle.
Apple is said to have accelerated its launch targets as it now aims to deliver a car within four years.
It also aspires to offer a model that features fully self-driving capabilities, according to Bloomberg.
Apple did not respond to MarketWatch's request for comment Thursday about its plans for electric vehicles.
Apple is worth more than Microsoft
Apple stock rose 1.54% to a record territory in afternoon trading on Friday.
The stock was up 8.4% amid a six-day winning streak.
Huberty acknowledges that Apple will "need to add new partners, acquire new components, and invest in new technologies internally" if it is to get into the automotive development space, but she sounded optimistic about the company's ability to manage this transition while taking advantage of existing capabilities.
Apple's stock had recorded a record close at the end of Thursday's trading, supported by reports about the company's plan to accelerate the production of a self-driving electric car.
And Bloomberg revealed that Apple is accelerating its plans to produce its first self-driving electric cars.
The report stressed that Apple is targeting 2025 to release the new car, which is faster than the previous schedule, which extends over a period of five to seven years.
At the end of the session, Apple's stock rose by 2.9% to $157.87, the highest closing ever, while its market value reached $2.59 trillion, becoming the world's largest company in terms of value, surpassing Microsoft's $2.56 trillion.