Tesla (TSLA) Weakens as Apple (AAPL) Car Chatter Grows Louder

Tesla (NASDAQ: TSLA) shares have weakened mid-day following another report that Apple (NASDAQ: AAPL) will enter the car market.

Today the FT reported the iPhone-maker is hiring employees from automotive technology to vehicle design for a new secret lab. This follows reports earlier in the week from BusinessInsider and others about the company's foray into the sector and poaching of Tesla employees. It also follows patent filings earlier in the month from Apple, which focused on automotive aspects.

While Tesla may be able to fend off competition from BMW, GM, Ford and others, if Apple were to enter the fray it may be an entirely different story.

Meanwhile, while bears may see it as a death-knell for Tesla, bulls could see Apple licensing Tesla battery technology and or acquiring the company, as had been rumored in the past. They may also view Apple as not so-much making a car as making technology for a car, which then could be integrated into Tesla vehicles.

Ironically, markets were amused with comments yesterday from Tesla CEO Elon Musk that the company could theoretically be worth as much as Apple ($700 billion) by 2025. Needless to say, Apple may get the last laugh.

Shares of Tesla are down 0.5%.

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