Apple’s Ambitious Car Project with BYD Comes to an Abrupt Halt
Apple (AAPL) had a long-running collaboration with Chinese automaker BYD Co. (BYDDY), but news just in indicates that the car project has been canceled, as reported exclusively by Bloomberg. Initiated around 2017, this partnership aimed to create a battery system that utilized lithium iron phosphate (LFP) cells, with Apple aspiring to develop batteries that were safer and offered longer ranges than existing options.
Apple’s Financial Commitment: $1 Billion Annually
Over the last decade, Apple poured approximately $1 billion each year into this venture, which was once envisioned as a groundbreaking project. Unfortunately, the initiative was ultimately abandoned in February. The battery technology developed during the partnership was specifically tailored for Apple’s prospective vehicle.
During their collaboration, Apple engineers contributed their expertise in advanced battery pack design and heat management, while BYD supplied manufacturing insights pertaining to LFP cells.
BYD Reaps Rewards from the Collaboration
Despite Apple’s decision to scrap its car project, BYD was able to leverage the knowledge gained from their partnership to create the Blade battery system. Today, this battery has become a cornerstone of BYD’s vehicle offerings.
The Blade battery is known for its improved range, enhanced safety features, and lower costs, helping BYD sell 3 million electric and hybrid vehicles in 2023. This figure marks a dramatic rise from just 179,054 units sold three years prior.
Nonetheless, BYD clarified to Bloomberg that the development of the Blade battery was conducted independently by its engineering team. The company emphasized, “The concept for the Blade battery originated with BYD engineers, who independently developed this LFP Blade battery. BYD holds complete property rights and patent rights for the Blade battery.”
For Apple, the car project provided valuable insights that influenced the development of other products, including the Vision Pro headset and the Neural Engine AI processor.
Looking Ahead: Analyst Predictions for AAPL Stock
Analysts hold a cautiously optimistic view on AAPL stock, currently rating it as a Moderate Buy. This consensus is based on 23 Buy ratings, 10 Holds, and one Sell recommendation. The stock has grown by more than 30% over the past year, and the average price target for AAPL sits at $248.90, suggesting a potential increase of 7.4% from current levels.
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