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.
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.
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.
This story originally appeared on Appleinsider
