The rumor that Apple is working on its own self-driving car has reared its ugly head again. Apple stock jumped on the reports, as did several companies’ stocks that build components for self-driving cars.
Two news outlets are reporting that Apple is still working on a self-driving car, but they differ on when the vehicle could land on the market. Meanwhile, Tesla CEO Elon Musk says Apple CEO Tim Cook wouldn't even meet with him about the iPhone maker buying the EV maker.
Modern Day Asset Management
ValueWalk's Raul Panganiban interviews Ross Klein, CFA, and Vince Lorusso. Ross is founder and CIO at Changebridge Capital and Vince is Partner and Portfolio Manager at Changebridge Capital where they manage the CBLS, Changebridge Capital Long/ Short Equity ETF and CBSE, Changebridge Sustainable Equity ETF. The following transcript is computer generated and may contain some Read More
Rumor refreshed: Apple working on self-driving car
Reuters kicked off the latest round of rumors about Apple working on a self-driving car. On Monday, the news outlet said that the iPhone maker is planning to put its vehicle on the market by 2024. However, the Economic Daily News reported later that Apple started increasing its orders with Taiwan's automotive suppliers. The news outlet added that Apple's self-driving car could become available as early as next September.
Apple has long been rumored to be working on a car, with its EV project said to be called Project Titan. The rumors have ranged from the company building an entire vehicle to something much simpler in the form of a kit containing the technology needed for self-driving vehicles. Apple has supposedly been testing that autonomous driving kit on California's roads.
The company added $102 billion to its market value after the rumors about the autonomous vehicle were refreshed this week. The Street also noted that developers of Lidar sensors have also rallied this week. Velodyne Lidar jumped more than 6%, while Luminar Technologies climbed nearly 5%. Charging station operator Blink Charging rose more than 16%, while solid-state lithium battery maker QuantumScape, which went public through a merger with a special purpose acquisition company last week, surged 24%.
No meeting about Apple buying Tesla
In related news, Tesla CEO Elon Musk tweeted on Tuesday that during the most challenging times of the Model 3 rollout, he contacted Apple CEO Tim Cook to talk about the iPhone maker possibly acquiring Tesla for one-tenth of its current value. However, Cook apparently refused to take the meeting.
Neither Musk nor Tesla has talked about selling the company in any financial filings. According to CNBC, Musk has also said previously that was at one point "about a month" from bankruptcy during the ramp of the Model 3, which was also never discussed in financial filings.