Apple Drains EV Resources For AI

After ten years of research and development, Tim Apple is finally pulling the plug on Apple’s electric vehicle (EV) project. Because as we all know, EVs have lost their luster and given way to the business world’s new savior…artificial intelligence (AI). 😇

Bloomberg broke the news today, saying the tech giant disclosed the strategy shift internally and surprised the nearly 2,000 employees working on the project. Executives told staffers the project would begin winding down and that many of the car team’s employees would be shifted to its artificial intelligence division, focused on generative AI. 

Tesla CEO Elon Musk subtly celebrated the move with a post on X after years of doubting the company’s efforts would bear fruit. Shareholders also applauded, with the 1-minute chart below showing a price surge after the announcement, with the stock holding onto its gains into the close. 

While some investors are happy that Apple is shifting resources to the new AI “gold rush,” others view them throwing in the towel on electric vehicles as a contrarian signal for the space. Electric vehicle stocks, including Tesla, have been hit hard over the last two years amid demand challenges. đŸĒĢ

That’s caused many automakers to throttle their approach to the space, with traders waiting for a big news event like this to help form a short-term bottom in these stocks. We’ll have to see if their contrarian view pays off or if Apple’s retreat is just another data point signaling that the industry’s problems are here to stay. 🤷

One thing’s for sure: this move sums up the current market environment as well as anything else. đŸ˜ĩ‍đŸ’Ģ

Learn More About...

Only Some EV-Makers Delivered

Electric vehicle (EV) manufacturers came out with their fourth-quarter delivery numbers today, sending their stocks all over the place. 📊

First, let’s start with everyone’s favorite, Tesla, which delivered mixed news to investors. It managed 1.81 million EV deliveries around the globe in 2023, meeting its full-year guidance and narrowly topping the consensus estimates. That was up 38% YoY but slowed from 2022. 

Read It

Chinese Smartphone Maker Unveils EV

Chinese smartphone giant Xiaomi is entering the highly competitive electric vehicle (EV) market, revealing its first electric car this weekend. 👀

The consumer electronics company unveiled its SU7 sedan, which it says it spent more than $1.4 billion to develop. The vehicle is set to roll out in China next year and is attempting to do something Faraday Future and other competitors have failed to do: create a software-focused vehicle that matches the technology people find in their phones to what’s happening in their cars. 

Read It

Boeing Loses Altitude (Again)

If you’re an investor in airlines or airplane manufacturers, this is not the type of headline you want to wake up to. Unfortunately for Boeing and several others, the news is not great. So let’s dig into it. 👇

Read It

All About Artificial Intelligence (AI)

It was another busy day for artificial intelligence (AI) news, with three U.S. tech giants unveiling new information and C3.ai reporting earnings. 📰

Let’s quickly cover the more concise news before jumping into earnings, starting with Google launching its new AI model that it hopes will take down GPT-4. CEO Sundar Pichai said that Google is entering a new era of AI: the Gemini era. 

Read It