AppleShares hit an all-time high on Friday after a report by Apple that it is increasing efforts to create a self driving vehicle. Apple shares were up over 1% at $160 as of Friday morning.

The following is an extract from the full report from Bloomberg NewsThe company pushes internally to meet the 2025 deadline in order to develop an autonomous car.

Apple could be in direct competition with Tesla by entering the electric vehicle market. TeslaAs well as new players such as RivianAnd Lucid Motorsautomakers, including traditional ones that have begun to move away from fossil fuels. As investors and consumers bet on the next Tesla, EV stock prices have risen in recent months.

Rivian went public Last week, the company was able to launch one of its largest IPOs. It quickly surpassed automakers’ market capital. Ford and General Motors. Shares of RivianAnd Lucid, which went public through a special purpose acquisition company in July, have been volatileEvery day.

The possibility of Apple entering the autonomous vehicle market has been speculated for years. Morgan Stanley issued two notes in response to Bloomberg’s story. Katy Huberty, analyst at Morgan Stanley wrote that one note contained enough detail and data to give credibility to the possibility that Apple’s Car launch would accelerate adoption (EV + AV), and increase the number of addressable markets similar to other Apple products.

Huberty said that although autos may be an entirely new business for Apple’s, Apple’s success in emerging markets and its ability to integrate vertically could help ensure it succeeds., Morgan StanleyThe Apple analyst. The stock has an equivalent to a buy rating and she stated that the cars offer the “clearest pathway” for Apple, which would allow it to double its market capital and revenue.

Apple shares rose 21% last year, bringing the company’s market value to $2.6 trillion.

“We can provide a number of examples from the last 20 years that show while Apple may not always be first to market, its innovation engine, differentiation via vertical integration, and manufacturing/operational excellence have allowed it to leapfrog first movers,” Huberty wrote.

Morgan Stanley’s Adam Jonas covers Tesla and called Apple’s vehicle “the ultimate EV bear” and said that the entry of the tech giant into this space was a “clear problem for many of our automotive coverage.” Jonas said that fully-autonomous cars will take a while to become popular in America due to a host of technological, moral and legal barriers.

“To be clear, we do not believe consumers will own title to a fully autonomous car … but will engage in the service as a subscription or transport utility,” he wrote.

WATCH: Apple shares surge on reports of autonomous vehicle production