Morgan Stanley discusses implications for Tesla if Apple moves into robots

Noting that Bloomberg reported that Apple (AAPL) is expanding its smart home manufacturing in Vietnam with an eye toward launching devices including a HomePod-style smart display and a motorized tabletop robot, Morgan Stanley said such a launch, if the report is accurate, would “mark another ‘moment’ 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 6 to 12 months will “unveil further evidence of the growing surface area between brick & mortar firms with AI firms,” adds the analyst. Commenting on potential implications for Tesla (TSLA), the analyst says Elon Musk “may have been early” on identifying the opportunity of physical AI and robotics, but “the secret is out” with all of the “Mag 7” companies having identified robotics as a critical area of scientific and commercial development. Apple getting “into the ring” on robots would mean another giant in need of word class AI and manufacturing talent, which amounts to greater competition, says the firm, which keeps an Overweight rating and $410 price target on Tesla shares.