Apple share gain dwarfs GM after car rollout news

(Reuters) -Shares in Apple Inc jumped more than 3% on Tuesday, adding more than General Motors' entire market capitalization to the value of the iPhone maker on signs it was planning to move forward swiftly with electric car production.

Reuters December 23, 2020 00:06:24 IST
Apple share gain dwarfs GM after car rollout news

Apple share gain dwarfs GM after car rollout news

(Reuters) -Shares in Apple Inc jumped more than 3% on Tuesday, adding more than General Motors' entire market capitalization to the value of the iPhone maker on signs it was planning to move forward swiftly with electric car production.

Sources told Reuters on Monday that Apple, whose automotive efforts had proceeded unevenly since 2014, was now targeting 2024 to produce a passenger vehicle that would include its own breakthrough battery technology.

The news hit shares of Tesla Inc and sent those in a number of current or potential partners for the California-based technology giant spinning higher.

"If Apple has achieved a battery breakthrough, this could serve as a driver to finally move forward with production given battery costs are one of the main obstacles to mass adoption of EVs," Evercore analyst Amit Daryanani wrote.

Apple's shares were last up 2.9% at $131.9, on track to add more than $62 billion to its market valuation. General Motors Co is worth around $58 billion at its current share price.

At session high, Apple's value had risen more in the past two days than the combined value of all of Detroit's Big 3 carmakers.

Shares in Tesla fell another 4% after losing 6.5% on Monday, in a session that was also affected by the fallout of its addition to the benchmark S&P 500 index.

"From a Tesla perspective, we have long felt that tech players like Apple (working with manufacturing partners such as Foxconn) represent far more formidable competition than the established/legacy OEMs," Morgan Stanley analysts said in a note.

People familiar with the matter also told Reuters that Apple has decided to tap outside partners for elements of the system which helps self-driving cars get a three-dimensional view of the road.

Shares of Velodyne Lidar, a supplier of lidar sensor systems for Apple test vehicles, jumped 14% on Tuesday, while peer Luminar Technologies rose 8%.

It remains unclear who would assemble an Apple-branded car, but sources have said they expect the company to rely on a manufacturing partner to build vehicles.

"Initially, the most likely rollout would involve several hundred Apple Cars driving in U.S. cities for a year or two before becoming more widely available," wrote Gene Munster, managing partner at Loup Ventures.

(Reporting by Munsif Vengattil in Bengaluru; Editing by Sriraj Kalluvila)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

More than 20 killed in Mali airstrike on wedding ceremony - health worker
World

More than 20 killed in Mali airstrike on wedding ceremony - health worker

DAKAR (Reuters) - More than 20 people, including children, were killed in an airstrike during a wedding ceremony in central Mali on Sunday, a health worker with knowledge of the attack told Reuters. (Reporting By Edward McAllister; Editing by Aaron Ross)

Bleak start to new year for Britain as it enters third lockdown
World

Bleak start to new year for Britain as it enters third lockdown

By Estelle Shirbon and Natalie Thomas LONDON (Reuters) - Britain began its third COVID-19 lockdown on Tuesday with the government calling for one last major national effort to defeat the spread of a virus that has infected an estimated one in 50 citizens before mass vaccinations turn the tide. Finance minister Rishi Sunak announced a new package of business grants worth 4.6 billion pounds ($6.2 billion) to help keep people in jobs and firms afloat until measures are relaxed gradually, at the earliest from mid-February but likely later

France cranks up COVID-19 vaccine rollout to deliver shots faster
World

France cranks up COVID-19 vaccine rollout to deliver shots faster

By Dominique Vidalon and Sudip Kar-Gupta PARIS (Reuters) - France is stepping up its COVID-19 vaccine rollout by widening the first target group to include more health workers and simplifying a cumbersome process to deliver shots more quickly, Health Minister Olivier Veran said on Tuesday. France's inoculation campaign got off to a slow start, hampered in part by red tape and President Emmanuel Macron's decision to tread warily in one of the world's most vaccine-sceptical countries. France has fallen behind neighbours such as Britain and Germany, and the president is now demanding the vaccination programme be expedited