Wedbush's Dan Ives Says Apple's Decision To Abandon EV Project Is 'The Right Move': '...Would Have Made This An Uphill Battle'
Portfolio Pulse from Benzinga Neuro
Apple Inc (AAPL) has decided to discontinue its electric vehicle (EV) project, Titan, after a decade of development. The decision, supported by Wedbush analyst Dan Ives, comes amid a rapidly evolving EV landscape. Nearly 2,000 employees involved in the project will be redirected to Apple's generative AI division, with some layoffs expected. The move has been met with mixed reactions, with some seeing it as a missed opportunity, while others, like CNBC's Jim Cramer, suggest companies like Alphabet Inc (GOOGL) should follow Apple's focused approach.
February 28, 2024 | 5:07 am
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POSITIVE IMPACT
Apple's decision to cancel its EV project and redirect efforts towards AI could refocus company resources on more promising areas, potentially boosting investor confidence.
Canceling the EV project removes a source of uncertainty and potential financial drain for Apple, allowing the company to concentrate on AI, a sector with significant growth potential. This strategic pivot could be viewed positively by investors, given the high competition and capital intensity of the EV market.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Jim Cramer's suggestion that Alphabet Inc should streamline its operations, inspired by Apple's decision, could indicate potential strategic shifts that might affect investor sentiment.
While the suggestion for Alphabet to streamline its operations is speculative, it highlights the broader industry trend towards focusing on core competencies. If Alphabet were to follow this advice, it could lead to significant strategic shifts, though the direct impact on the stock is uncertain without concrete actions.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50