Apple Inches Toward Record After Report on Autonomous Car Plans

Apple Inc. rose on Tuesday, with the stock returning to near-record levels after Reuters reported that the company plans to build a self-driving car and is targeting 2024 to produce the vehicle.

The stock gained as much as 4.8% to its highest level since September, adding about $100 billion to the iPhone maker’s market value. Apple’s session high would represent a record close for the stock.

Its shares have risen more than 20% since the start of November, bringing its year-to-date advance to 81%. Apple is on track for its second straight year with a gain above 80%.

Apple Inches Toward Record After Report on Autonomous Car Plans

Wall Street analysts were cautiously upbeat about the Reuters report, though some noted the lower margins of the auto industry. RBC Capital Markets wrote that the news was “indicative of the innovation upside that shareholders receive” with Apple, and that it was positive on the long-term potential for gains. Autonomous and electric vehicles would “significantly expand” the company’s total addressable market, it added.

Analysts have been optimistic about Apple’s prospects of late, seeing signs of strong demand for key products. High-end models of the company’s 5G iPhone have been a standout, including in China.

©2020 Bloomberg L.P.

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