While Musk might have been early, “the secret is out” with all of the “Mag-7” companies having identified robotics as a critical area of scientific and commercial development, Morgan Stanley said, as per TheFly.
Morgan Stanley on Wednesday opined that Tesla (TSLA) CEO Elon Musk “may have been early” in identifying the opportunity of physical AI and robotics, but the competition is rising.
This comes on the heels of a report that Apple (AAPL) is preparing to expand its manufacturing operations in Vietnam to build tabletop robots.
While Musk might have been early, “the secret is out” with all of the “Mag-7” companies having identified robotics as a critical area of scientific and commercial development, Morgan Stanley said, as per TheFly.
Apple’s entry into the robotics market would mean another giant in need of world-class AI and manufacturing talent, which amounts to greater competition, said the firm. The analyst, however, kept an ‘Overweight rating’ and $410 price target on Tesla shares.
Bloomberg on Tuesday reported, citing people familiar with the matter, that Apple is expanding its smart home manufacturing in Vietnam, intending to launch devices including indoor security cameras, a display designed to control appliances and serve as a house command hub, and a motorized tabletop robot.
According to Morgan Stanley, such a launch, if the report is accurate, would mark another milestone in the journey of AI getting physical. Moving AI into the physical world “expands the aperture” of companies involved in the AI era, and the next six to 12 months will “unveil further evidence of the growing surface area between brick and mortar firms with AI firms,” the analyst added.
On Stocktwits, retail sentiment around TSLA stock fell from ‘neutral’ to ‘bearish’ territory over the past 24 hours, while message volume stayed at ‘low’ levels.
TSLA stock is up by 7% this year and has nearly doubled over the past 12 months.
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