Cancelling the Apple Car is a good move, says Morgan Stanley
Analysts at investment bank Morgan Stanley say that Apple was too far behind in the car market, and cancelling the Apple Car means it can put its resources to better use in AI.
![Front view of a black car with distinctive, illuminated contour lines against a dark background, overlaid with a colorful Siri logo.](https://photos5.appleinsider.com/gallery/58763-119745-000-Apple-Car-xl.jpg)
Siri AI should benefit from the cancellation of Apple Car
While the apparent cancellation of the Apple Car project has surprised many, analysts at Morgan Stanley say it has never factored in their analysis of the company.
Specifically, Morgan Stanley is retaining its price target for Apple of $220, because it had put no value on Apple Car. That's because, it now argues, Apple was still only at a testing stage where 20 firms are already selling electric vehicles (EVs), and over 200 are working on EV technology.
Furthermore, the investment firm believes the reported $1 billion figure that Apple was said to be spending annually on the project
Consequently, the Morgan Stanley investor note seen by AppleInsider says that the time, money, and resources spent on the Apple Car will have much more effect and impact if they are redeployed to AI. The report was clear that was the case, explicitly saying that engineers were going to shift to that department, remaining under John Giannandrea.
The analysts also say that a cancellation would demonstrate Apple's discipline over the cost of long-term projects.
This does contrast with Morgan Stanley's 2021 assessment that the "game changer" Apple Car would be the "ultimate EV bear case," and also affect stocks in rival automotive companies.
Read on AppleInsider
Comments
He told that he wanted a slack of glass as the whole computer. When an engineer showed him the bouncing effect… he shelved the… then called iPad… and developed the iPhone.
So… maybe… we will get something similar to the iPhone from this… cancelation. Although if I follow the way of past events… after some years the Car… as the iPad… will appear.
What strikes me is their 2021 assessment because things weren't much different back then. Products were coming or already on the market.
Prior to news about the project being cancelled the final product was still rumoured to be a way off. I suppose that might have weighed its chances of success down in the eyes of top management (along with the billions associated with keeping it going).
Still disappointing though. And now some are saying that AI needs in other areas we're a contributing factor too.