What you need to know
- Morgan Stanley analysts believe Apple may be Tesla's biggest competition.
- They point to potential services revenue as one of the reasons for Apple wanting to build a car.
Reported by 9to5Mac, a new investor note from analysts at Morgan Stanley says that an Apple Car would be "far more formidable competition than the established OEMs" to Tesla. Like any industry that Apple wades into, the analysts believe that Apple may be building its own self-driving car because it has identified an opportunity to "dramatically improve the user experience."
The note goes on to suggest that the future of services in the car may end up outweighing the business opportunity of selling the physical car itself.
The analysts also point to core technology investments that Apple has made that could be applicable to a potential car business.
This new investor note happens to come on the same that Tesla CEO Elon Musk said he once attempted to discuss selling the company to Apple, but Tim Cook refused the meeting. A Reuters report from yesterday suggested that Apple, if they do move forward, may plan to begin producing a passenger vehicle as soon as 2024.
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Joe Wituschek is a Contributor at iMore. With over ten years in the technology industry, one of them being at Apple, Joe now covers the company for the website. In addition to covering breaking news, Joe also writes editorials and reviews for a range of products. He fell in love with Apple products when he got an iPod nano for Christmas almost twenty years ago. Despite being considered a "heavy" user, he has always preferred the consumer-focused products like the MacBook Air, iPad mini, and iPhone 13 mini. He will fight to the death to keep a mini iPhone in the lineup. In his free time, Joe enjoys video games, movies, photography, running, and basically everything outdoors.