An Apple Inc AAPL-branded electric vehicle is unlikely to become a reality before, at least, 2025, according to TF Securities analyst Ming-Chi Kuo.
What Happened: If Apple were to start developing an EV in 2020 and “if everything goes well,” the launch of such a vehicle could be between 2025 and 2027, the analyst said, as reported by Apple Insider.
“Due to changes in the EV/self-driving market and Apple's high quality standards, we would not be surprised if Apple Car's launch schedule is postponed to 2028 or later,” the analyst said in a note.
Kuo warned investors against believing an earlier report that claimed manufacturers in Taiwan were scurrying to supply parts to Apple for a September 2021 launch of an EV, as per Apple Insider.
Investors rushing to buy shares in companies said to be linked to Apple's EV efforts is a "knee-jerk reaction that could be short-lived," as per Kuo.
Why It Matters: The analyst cited the uncertainty of the “launch schedule”, a missing supplier or specification for the vehicle, and the uncertainty of the Tim Cook-led company’s “competitiveness in the EV/self-driving car market,” as three reasons investors should avoid shares of companies related to Apple’s EV foray.
In a previous report, TF Securities had forecast an Apple Car launch between 2023 and 2025, noted Apple Insider.
Kuo also reminded investors to tame down their “high expectations” for the Apple Car, citing previous forays such as one made in the smart speaker market with the introduction of HomePod and HomePod mini.
“The competition in the EV/self-driving car market is fiercer than that for smart speakers, so we think it's perilous to jump to the conclusion that Apple Car will succeed,” the analyst wrote, as noted by MacRumors.
Last week, Loup Ventures analyst Gene Munster said that the iPhone maker could become the “first true competitor” to Elon Musk-led Tesla Inc TSLA.
Price Action: Apple shares closed nearly 0.8% higher at $131.97 on Thursday.
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