Apple vs. Tesla Motors - Which Would You Rather Invest In?
According to technology pundits, Apple (NASDAQ: AAPL) is either one major product launch away from reclaiming its title as the world’s most important consumer technology company, or the company is hopelessly floundering without the leadership of the late Steve Jobs.
Apple has been notably silent in recent years as far as revolutionary product launches go, a fact that has left many technology experts scratching their heads. It seems everyone’s latest pastime is guessing what the Cupertino-based company will do next. Speculation has ranged from the company gearing up to release wearable technology, such as a watch, to the company investigating getting into the medical technology business.
One of the most interesting points of speculation is that Apple is considering taking over Tesla Motors (NASDAQ: TSLA), makers of the hottest electric cars in America. Let's take a look at how both companies comparatively performed in 2013 and into 2014.
Apple stock opened 2013 at $553.82. The stock had been on a significant downswing at the time, a slide that continued for practically the entire year. Apple traded in negative territory for the better part of 2013, and even dipped down below $400 in April and June before pulling back closer to the stock’s 2013 opening price. It wasn’t until late November that Apple finally pulled into positive territory for the year.
By the end of December, Apple traded back to almost exactly where it had begun the year, and closed at $561.02 for a negligible yearly gain. Going into 2014, Apple stock dipped under $500 in late January, before bumping up close to $550 in most recent trading.
Tesla Motors began 2013 trading at $35.00. The company’s stock was able to move steadily higher throughout much of the year, until it began to pull back in the fall and reaching $194.50 per share on September 30, an amazing rise of over 400 percent for 2013. When the company finally began to drop, due to pressure from negative news stories related to the company’s batteries catching fire, investors had already locked in monumental returns. However, Tesla was able to stop the slide of its stock value and finish the year at $150.
2014 saw more good fortune for Tesla, as the company’s stock continued to gain value and shot past its 2013 yearly highs in mid-February.
Apple has struggled in recent years. The company that was touted as one of the most likely to cross the $1,000 per share threshold just a few short years ago is now struggling to maintain half that price. Many analysts fault a lack for innovative product launches for Apple’s lack of stock value growth. As has happened so many times in the past, the Wall Street rumor mill has begun to churn with talk of a mega merger – this time between Apple and Tesla. Only time will tell if the rumors prove true.
In the meantime, it looks like Tesla is the better bet from a stock value growth perspective.
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