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Everybody in the industry is currently talking about an Apple Car, but Apple remains shrouded in typical FBI-like secrecy whenever a new project critical for the company is concerned.
According to people familiar with the matter, Apple is expected to announce the all-new EV in 2024 at the earliest. Unsurprisingly, analysts out there see this as a turning point for the future of the iPhone maker.
And it’s all because the Apple Car is expected to become a moneymaking machine, with the Cupertino-based tech giant projected to reach the $3 trillion market cap in just a few years.
Citi analyst Jim Suva was one of the first to forecast this important milestone for Apple’s valuation, estimating the whole thing would happen by 2030. Now, several others agree there’s a good chance the tech giant manages to do this in approximately five years after the EV's launch.
But reaching a $3 trillion market valuation won’t be easy, though analysts expect both Apple and Tesla to push hard in the next decade to do it.
On Monday, Apple stock closed at $123.39 per share, which means the company was valued at $2.07 trillion, while Tesla increased to $670 to bring the market cap to $643 billion.
“A $3 trillion market cap has to be a function of both the promise of a technology and some very tangible proof that its economic model is profitable, and deeply profitable,” Nicholas Colas, co-founder of DataTrek Research, was quoted as saying by Bloomberg. “So you don’t get to $1 trillion, let alone $3 trillion by just talking. You get there by showing the numbers, by showing the profitability.”
For Apple, the tech side is already the part that sets it apart from the rest of the crowd. On the other hand, the company lacks the know-how and resources to build a car. That is the reason Apple is now seeking an automaker to build the EV. After failed talks with Hyundai, Nissan, and possibly others, the company’s only way to go might be a contract manufacturer like Foxconn.
According to people familiar with the matter, Apple is expected to announce the all-new EV in 2024 at the earliest. Unsurprisingly, analysts out there see this as a turning point for the future of the iPhone maker.
And it’s all because the Apple Car is expected to become a moneymaking machine, with the Cupertino-based tech giant projected to reach the $3 trillion market cap in just a few years.
Citi analyst Jim Suva was one of the first to forecast this important milestone for Apple’s valuation, estimating the whole thing would happen by 2030. Now, several others agree there’s a good chance the tech giant manages to do this in approximately five years after the EV's launch.
But reaching a $3 trillion market valuation won’t be easy, though analysts expect both Apple and Tesla to push hard in the next decade to do it.
On Monday, Apple stock closed at $123.39 per share, which means the company was valued at $2.07 trillion, while Tesla increased to $670 to bring the market cap to $643 billion.
“A $3 trillion market cap has to be a function of both the promise of a technology and some very tangible proof that its economic model is profitable, and deeply profitable,” Nicholas Colas, co-founder of DataTrek Research, was quoted as saying by Bloomberg. “So you don’t get to $1 trillion, let alone $3 trillion by just talking. You get there by showing the numbers, by showing the profitability.”
For Apple, the tech side is already the part that sets it apart from the rest of the crowd. On the other hand, the company lacks the know-how and resources to build a car. That is the reason Apple is now seeking an automaker to build the EV. After failed talks with Hyundai, Nissan, and possibly others, the company’s only way to go might be a contract manufacturer like Foxconn.
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