Dow Jones Industrial Average (DJ INDEX: ^ DJI) fell 0.3% to 13:20 on Tuesday as consumer confidence declined in the face of a growing pandemic. The Conference Board reported a decline in consumer confidence for December, driven in part by holiday intentions that were controlled as COVID-19 cases increased.
Apple (NASDAQ: AAPL) The stock managed to rise on Tuesday, while investors reacted to a report suggesting that the tech giant is working on a consumer vehicle for launch in 2024. Boeing (NYSE: BA) were also in operation after the company obtained a significant order for its 737 MAX aircraft.
Image source: Getty Images.
Rumors about Apple cars have returned
Apple shares rose on Tuesday, after Reuters reported that the technology giant aims to produce by 2024 a passenger vehicle with automatic driving technology and a next-generation battery.
Sources at Reuters say that Apple has now made enough progress that it intends to actually produce a vehicle for consumers. The plan is based on a new battery design, which has the potential to significantly reduce costs and increase autonomy.
Apple is unlikely to produce a car on its own. The company relies on third-party manufacturers for its iPhone, and cars are one of the most complex products produced on a large scale. adze, who is now 17, relies on the sale of regulatory loans to make a substantial profit. And the car industry as a whole is cyclical and prone to brutal recessions.
If Apple eventually offers a vending machine, it will almost certainly rely on production partners. Reuters sources say Apple has already decided to use partners for certain items, including lidar sensors.
While Apple has been hugely successful in the smartphone, tablet and smartwatch markets, some of its products have been unpleasant. The company’s HomePod smart speaker had a market share below 5% last year; even Apple’s extensive ecosystem and loyal customer base could not persuade many people to buy the device. It remains to be seen whether any of Apple’s existing advantages translate into the demand for an Apple car.
Shares of Apple rose about 3.3% until early Tuesday afternoon. A successful car would provide Apple with an important source of new revenue, but it would also be far outside the company’s circle of expertise.
Boeing wins the 737 MAX order
Boeing received a much-needed order for its 737 MAX aircraft on Tuesday, as the global travel industry continues to move away from the pandemic. Alaska Airlines (NYSE: ALK) extended a previous order by hiring an additional 23 737 MAX aircraft. Alaska now has orders and options for 120 737 MAX aircraft.
Alaska placed an original order for 32 737 MAX aircraft in 2012. The airline announced last month that it would lease an additional 13 aircraft. Following the new order, Alaska has 55 aircraft to order and options to purchase an additional 52 aircraft.
This is the second major 737 MAX order Boeing has received this month. Previously, the European airline at a discount Ryanair has ordered another 75 planes as it prepares to return after the pandemic.
Boeing shares rose about 0.2% as of early Tuesday afternoon. While the stock has recovered from its pandemic lows, the aviation giant’s shares are still down about 32% this year.