Here's What Morgan Stanley Sees From Apple Car

Bloomberg reported yesterday that Apple Inc AAPL is working to accelerate its electric vehicle project, Project Titan, and may introduce a fully autonomous, self-driving car by as early as 2025.  Morgan Stanley analyst Katy Huberty laid out five observations regarding why "investors should pay attention to Apple Car." 

• History suggests Apple won't be first to market, but historically its innovation engine, differentiation via vertical integration, and manufacturing and operational excellence have allowed it to leapfrog first movers.
• Like it did for smartphones, tablets, and wearables, Apple's entry into the autonomous vehicle market is likely to accelerate consumer adoption. 
• Apple's success comes in the form of vertical integration, and Apple will approach the car design by "leveraging everything from its arsenal of semiconductor, design, software, and services IP," said Huberty.
• Huberty added that scale and supply chain execution is "also important differentiators" for the company. 
• Lastly, she thinks the "ultimate monetization opportunity" for an Apple Car will be in Services. 
• Huberty keeps an Overweight rating and a $164 price target on Apple shares, implying fully priced at the current level.
• Price Action: AAPL shares traded higher by 0.04% at $157.94 in the premarket session on the last check Friday.