Skip to main content

Is Tesla the Next Apple?

Publish date:
Video Duration:

Tesla Inc. (TSLA) - Get Report and Apple Inc. (AAPL) - Get Report are some of biggest powerhouse companies in business, but is there a chance that they could become partners?

Morgan Stanley analyst Katy Huberty says despite come similarities, the odds of Tesla and Apple working together are unlikely.

"View Tesla in a way they viewed Apple 20 years ago: a company that thinks differently, that is incredibly innovative in a category that needs a spurt of innovation. That creates investor interest. If there’s a path to profitability and reason to believe scale will continue to increase, then tech investors tend to not care as much about valuation and/or are will to look multiple years into the future when scale and profitability will support current valuation," Huberty wrote in a note to clients. 

As of early trading, Tesla shares were marked 0.5% higher at $819.20 each. They have now risen nearly 95% so far in 2020. 

As for Apple, their shares were marked 0.1% lower at $319.00 each. They have gained 8.5% this year against a 13.8% decline for the Dow Jones Industrial Average. 

For more, check out Martin Baccardax and his breakdown of Tesla and Apple. 

Watch More of the Latest Videos from TheStreet and Jim Cramer

Related Videos