Tesla joined the S&P 500 this week. But that wasn’t the only major headline in the electric-car space. Another potentially huge story emerged on Monday.
“Apple targets car production by 2024 and eyes ‘next level’ battery technology,” was the headline on Reuters. The exclusive report cited anonymous sources familiar with the situation. Here are the two key points:
- The goal is a personal, mass-market autonomous vehicle.
- AAPL’s car would feature a radically new battery design to lower costs.
This story emerges at the same time Wall Street focuses on the iPhone upgrade cycle. It shows how AAPL keeps evolving to provide growth stories for years into the future.
Additionally, it highlights Tim Cook’s awareness of stock multiples and valuations. He shifted toward software and services because investors pay higher multiples for recurring revenue over one-off hardware. You also have the rise of ESG investing.
