Apple sees market value grow $102 billion after report says the company aims to produce electric cars by 2024

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Apple climbed as much as %4.7 on Tuesday following a Reuters report on Monday afternoon that the tech giant aims to produce electric cars by 2024.The company will aim to compete in the electric vehicle market with battery innovations that improve vehicle safety, packaging, and range, according to the report.The news, published less than an hour before markets closed on Monday, lifted Apple to a 1.2% gain in the previous session.The rally saw Apple’s market cap grow by more than $102 billion at intraday highs.Watch Apple trade live here.Apple gained 4.7% on Tuesday following a Reuters report from the previous day that the iPhone maker plans to produce electric cars by 2024.The tech giant aims to compete in the rapidly expanding electric-car market with new battery technologies that improve vehicles’ safety and range, according to the report. The advancement will also “radically” cut down on battery costs, a source familiar with the plans told Reuters.The rally saw Apple’s market value grow by more than $102 billion at intraday highs.Read more: Brooke de Boutray beaten 99% of her peers over the last 5 years and runs a fund that is up 148% in 2020. She shared with us 4 stocks she’s most bullish on heading into 2021.

The report lifted Apple shares to a 1.2% gain on Monday after being released less than an hour before markets closed. Tesla, which would likely serve as Apple’s greatest competitor in the automotive sector, extended earlier losses and closed 6.5% lower.Suppliers of lidar sensors rallied in early Monday trading after sources told Reuters that Apple plans to partner with other companies for some vehicle systems. Apple developed its own lidar sensors for the iPhone 12 Pro and iPad Pro models.The report revives talks of Apple’s automotive plan, known as Project Titan, after layoffs and leadership shakeup spurred rumors the project had died. The company plans to incorporate a “monocell” design that concentrates battery cells and creates more space in battery packs by doing away with various storage pockets, according to the report. The layout allows for denser battery units and, in turn, a longer range than layouts with more loosely packed cells.Apple is also experimenting with a lithium iron phosphate battery chemistry, a new mix that’s less likely to overheat than lithium-ion batteries, Reuters reported. 

Read more: BANK OF AMERICA: Buy these 16 medtech stocks with strong fundamentals that are set to soar post-pandemicTo be sure, even Apple’s expertise in handling massive supply chains would likely be tested by vehicle production. Tesla spent nearly two decades building cars before turning a steady profit. Apple would need to collaborate with a slew of new partners and venture into manufacturing processes not used in the production of its current hardware.”If there is one company on the planet that has the resources to do that, it’s probably Apple. But at the same time, it’s not a cellphone,” one person who worked on the car project told Reuters.Apple closed at $128.23 on Monday, up 76% year-to-date. The company has 75 “buy” ratings, 18 “hold” ratings, and three “sell” ratings from analysts.Now read more markets coverage from Markets Insider and Business Insider:

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