Apple Offers Possible Clue To Apple Car In SEC Filing
Apple ( AAPL ) may have tipped its hand about investments in developing an electric car in its latest 10-Q filing with the U.S. Securities and Exchange Commission, UBS analyst Steven Milunovich said Thursday. Apple reported that “other off-balance sheet obligations” were up over 75% year over year to a record high near $12 billion. “Our hunch is that this increase in part reflects spending for the Apple car or Project Titan,” Milunovich said in a research note. “Apple has been buying and leasing buildings with Greek god names and dedicated spaces for ‘tire changing,’ ‘lube stations,’ and ‘wheel balancer.’” The Apple Car has been the subject of much talk over the past few weeks after the Silicon Valley Business Journal reported that Apple had been purchasing and leasing a variety of buildings in Sunnyvale and San Jose, Calif., clearly meant for automotive research and development, Milunovich said. Apple recently hired Chris Porritt , former Tesla Motors ( TSLA ) vice president of vehicle engineering and former Aston Martin chief engineer, to work on its Project Titan electric car venture, according to media reports. Other explanations for the increase in off-balance sheet obligations include costs associated with Apple’s new campus in Cupertino, Calif., and expansion of data centers to support service offerings, he said. Milunovich reiterated his buy rating on Apple stock with a 12-month price target of 120. Apple shares fell 3.1% to 94.83 on Thursday after billionaire investor Carl Icahn told CNBC that he had sold his stake in Apple over concerns about the company’s prospects in China. At one point, Icahn owned 53 million shares of Apple, or nearly 1% of the company. “We no longer have a position in Apple,” Icahn said in an interview on CNBC. RELATED: 5 Key Takeaways From Apple’s Unsettling Q2 Earnings Report Apple Car Will Look Like Egg On Wheels If Motor Trend Design Right