Apple's shares hit a new high after a report said the company plans to build a self-driving car as soon as 2025.

  • Following a report that the company is speeding up efforts to launch a vehicle, Apple shares hit a new high on Friday.
  • Its stock finished the day up 1.7 percent at $160.
  • In a study released after Bloomberg's revelation, Morgan Stanley analyst Katy Huberty stated that Apple's track record in new markets could foretell success.

Following reports that Apple is accelerating efforts to launch a self-driving vehicle, the 's shares hit a new high on Friday. Apple's stock traded at $160.55 per share, up 1.7 percent.

Internally, the company is pushing for an autonomous vehicle deadline of 2025., according to the report.

Apple's entry into the electric vehicle market might pit the business against Tesla, as well as newcomers like as Rivian and Lucid Motors, as well as traditional manufacturers moving away from fossil fuels. In recent months, electric vehicle stocks have risen as more consumers and investors gamble on what they hope will be the next Tesla.

Rivian went public last week in one of the year's biggest IPOs, swiftly outpacing manufacturers Ford and General Motors in terms of market capitalization. Rivian and Lucid, which went public in July through a special purpose acquisition company, have been extremely volatile this week.

Apple's possible entry into the driverless vehicle area has long been speculated about. Following the story, Morgan Stanley released two notes, one of which said it's "the first press report to include a broad number of data points sourced to Apple insiders and provides enough reported detail to potentially lend credibility to the idea that Apple's Car launch could both accelerate adoption of new technology (EV + AV) and expand the addressable market similar to previous Apple product launches."

While autos are a new venture for Apple, Huberty, Morgan Stanley's Apple analyst, believes the company's track record in new sectors and vertical integration capabilities bode well for success. She gave the company a buy recommendation and noted that vehicles are the "clearest way" for Apple to increase its revenue and market capitalization.

Apple's stock has risen 21% this year, bringing the company's market capitalization to $2.6 trillion.

"While Apple may not always be first to market," Huberty noted, "its innovation engine, differentiation via vertical integration, and manufacturing/operational excellence have allowed it to leapfrog first movers."

Apple's car, according to Morgan Stanley's Adam Jonas, is "the ultimate EV bear case," and the tech giant's foray into the space is a "clear negative for much of our automobile coverage." Because of a variety of moral, legal, and technological impediments, fully autonomous vehicles will be sluggish to acquire traction in the United States, Jonas added.

"To be clear, we do not believe consumers will buy a fully autonomous automobile... but would instead subscribe to or use the service as a transportation utility," he wrote.