Tesla Inc. may be facing more competition from other tech giants than initially feared, and one of the analysts that had been most bullish on the firm is growing increasingly worried.
Morgan Stanley’s Adam Jonas, who downgraded shares of Tesla in mid-May on risk of competition from the world’s largest tech companies, is reiterating his concerns after hearing Apple CEO Tim Cook outline the iPhone maker’s plans.
In the interview, Cook said that autonomous systems were a key focus of the firm, adding that “it’s a core technology that we view as very important.”
The race to the top in the future of the automotive industry has a slew of technology companies pushing into the sectors, with firms such as Google affiliate Waymo signing partnerships with Fiat Chrysler Automobiles and Lyft Inc. to develop the technology, and carmakers from BMW AG to General Motors opening offices in Silicon Valley.
Apple has hired more than 1,000 engineers to work on Project Titan, as the car team is known internally, after it started in 2014 and this is merely the first step for Apple.
