Tech giant Apple Inc. has experienced a decline in its market capitalization in recent times following its announcement to discontinue the production of electric vehicles (EVs). This unexpected move has raised concerns among investors and industry experts, with many speculating about the reasons behind this strategic shift
Market cap is a crucial metric used to evaluate a company's value on the stock market. It is calculated by multiplying the total outstanding shares by the current market price per share. Historically, Apple has been one of the most valuable companies in the world, frequently surpassing the trillion-dollar mark in terms of market cap.
Apple's foray into the electric vehicle industry was highly anticipated, with rumors and speculations circulating for years. However, the recent announcement of Apple's decision to halt EV production has surprised many. The company had reportedly been working on developing its electric vehicle, with plans for a self-driving car in the pipeline. But now, Apple has shifted its focus towards autonomous driving systems instead.
The sudden shift raises doubts about Apple's ability to compete in the rapidly evolving electric vehicle market, as established players like Tesla and traditional automakers invest heavily in EV technology. Apple's focus on autonomous driving systems may have been perceived negatively by investors, as the highly competitive market faces challenges.
Furthermore, the increasing positive market sentiment towards EVs and green technologies may be seen as a setback for Apple, as sustainability becomes a key consideration for investors.
Despite this, the company's history of innovation and resilience suggests it can still succeed in the autonomous driving market. With vast resources, technological expertise, and a loyal customer base, Apple has the potential to significantly impact the market. However, the challenges and uncertainties in the dynamic technology industry remain.
Writer: Md. Meheruzzaman Mia Abir, Student, North South University
Email: meheruzzaman.abir@northsouth.edu
BDST: 1515 HRS, MAR 17, 2024
MSK
