Apple shares skyrocketed today after recent reports reinforced speculation that the Cupertino company is developing its own passenger vehicle featuring proprietary battery technology.
As of the time of writing, Apple shares have jumped over 3%, representing a price increase of nearly $3 USD per share on the day. Apple’s market value grew by more than $102 billion USD at intraday highs.
Investor sentiment was seemingly driven by recent news that Apple is moving forward with its plans to build a vehicle for the mass market. The vehicle, which is part of what has been known as “Project Titan,” is reportedly set to have a new battery design which could significantly cut costs while increasing the vehicle’s range.
The company plans to incorporate a “monocell” design to concentrate battery cells and create more space in battery packs by doing away with various storage pockets, Reuters reported. The layout would allow for denser battery units and a longer range than layouts with more loosely packed cells.
“If Apple has achieved a battery breakthrough, this could serve as a driver to finally move forward with production given battery costs are one of the main obstacles to mass adoption of EVs,” Evercore analyst Amit Daryanani wrote.
At this point, it’s still unclear who would manufacture a so-called Apple Car, but sources say they expect the tech giant to rely on a manufacturing partner.
“Initially, the most likely rollout would involve several hundred Apple Cars driving in U.S. cities for a year or two before becoming more widely available,” wrote Gene Munster, managing partner at Loup Ventures.