Apple in the midst of an electric vehicle partner 'dating game,' analyst says

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in General Discussion
Apple is in the midst of an electric vehicle "dating game" ahead of a formal "Apple Car" partnership announcement in 2021, a Wedbush analyst said on Monday.

Credit: AppleInsider
Credit: AppleInsider


In a note to investors seen by AppleInsider, Wedbush analyst Daniel Ives says that recent reports of dissolved discussions between Apple and car makers like Hyundai are part of the Cupertino tech giant's process of picking an EV partner.

The analyst also noted recent rumors of Nissan expressing interest in producing the "Apple Car." Although the Japanese automaker later clarified that it wasn't in talks with Apple, Ives says the rumors of the discussion are further proof of Apple's EV "dating game."

Ives writes that, at this point, it's a matter of "when not if" Apple will enter the EV market. The analyst reiterates his prediction that there's at least an 85% chance of Apple formally announcing a strategic EV partnership or collaboration in the next three to six months.

"We continue to strongly believe Apple ultimately announces an EV strategic partnership in 2021 that lays the groundwork to enter the burgeoning EV space," the analyst writes.

With aggressive EV endeavors from established players like GM and Form and a coming "green tidal wave" during the Joe Biden presidency, Ives says now is the deal time for Apple to dive into the market.

As far as partners, he adds that a collaboration with an established player such as Hyundai, Tesla, Ford, Nio, or Volkswagen would a "golden partnership for the next decade."

He points toward Hyundai and VW as the ideal partners for an "Apple Car," since they both have modular EV platforms that could form the framework for Apple's own autonomous vehicle. For Hyundai, that's the E-GMP platform, and for VW, it's the Modular Electric Drive Matrix.

"In a nutshell, Apple with the right partner (Hyundai and VW Top 2 choices) would be a major force in the EV industry and could disrupt market share from the likes of Tesla, GM, Ford if the company is able to get the Apple Car on the road by 2024," the analyst concludes.

Ives maintains his 12-month AAPL price target to $175. The valuation is based on a sum-of-the-parts assessment of Wedbush's 2022 estimates, including a 16x multiple on Apple's Services at $1.2 trillion and a 7x multiple on Apple's hardware business at $1.9 trillion.

Comments

  • Reply 1 of 13
    This Apple car renders look like Tesla Model Y
  • Reply 2 of 13
    I do not understand why Hyundai/Kia is mentioned as one of best candidates.
    Have you ever been to their plant in Georgia? I have ever been to.

    The plant in Georgia has no E-GMP platforms and no other platforms for electric cars. Therefore, it is not possible to produce electric cars. 
    Their plant and capacity are full until 2022 because their new SUV is selling very well in the US. 

    Kia has "only" a capacity for 400k cars per year. Even if Kia accepted the request from AAPL, Kia would have to build another plant, which would take some years. 

    I am very excited to see if any remarkable OEMs would go into a partnership with AAPL. 

    VW? LOL.... VW will never ever make AAPL branded cars. 

  • Reply 3 of 13
    I say go with JLR. Since JLR is owned by Tata Motor’s of India.  Apple would be helping two country’s economy. And JLR is going all EVs by 2025-2030.  JLR kind of fits Apple’s high end marketing.
  • Reply 4 of 13
    I am hoping for a Toyota Tacoma hybrid.
  • Reply 5 of 13

    VW? LOL.... VW will never ever make AAPL branded cars. 

    Why not?

    I think you underestimate Apple. And you terribly underestimate the pain - especially unemployment - that the ICE incumbents have to confront in the next few years. It’s going to be a bloodbath. Anyone that walks in with the offer of using up excess capacity in capital and labor will be welcomed with open arms by the incumbents. Even by companies like MB and BMW. 
  • Reply 6 of 13
    This analYST, just like 99% of the rest of them, knows nothing that the rest of didn’t know at the same time or before he knew.
  • Reply 7 of 13
    Ford and GM have platforms that a car could be built on as well. There seem to be a lot of rumors of Apple building their own platform, so they may just be looking for an assembly partner.
  • Reply 8 of 13
    Ford and GM have platforms that a car could be built on as well. There seem to be a lot of rumors of Apple building their own platform, so they may just be looking for an assembly partner.
    If so, it could harken back to a time when the US made great quality products. 
  • Reply 9 of 13
    dk49dk49 Posts: 169member
    What a useless report by this analyst. It's all over the news that Apple is looking for an EV partner.
  • Reply 10 of 13
    Rayz2016Rayz2016 Posts: 6,957member
    dk49 said:
    What a useless report by this analyst. It's all over the news that Apple is looking for an EV partner.
    Yes, the only surprising thing about this report is that someone paid him for it. 
    Vermelho
  • Reply 11 of 13
    hentaiboyhentaiboy Posts: 1,244member

    VW? LOL.... VW will never ever make AAPL branded cars. 

    Why not?

    I think you underestimate Apple. And you terribly underestimate the pain - especially unemployment - that the ICE incumbents have to confront in the next few years. It’s going to be a bloodbath. Anyone that walks in with the offer of using up excess capacity in capital and labor will be welcomed with open arms by the incumbents. Even by companies like MB and BMW. 
    VW is the world’s second largest car company with revenue of €252.6 billion in 2019. Here are a few of the brands they own:
    • Audi
    • SEAT
    • ŠKODA
    • Bentley
    • Bugatti
    • Lamborghini
    • Porsche
    • Ducati
    • Scania
    • MAN
    It will deliver 80 new electric models to customers by 2025 and has earmarked more than €20 billion for the transition.

    I don’t think they need pocket money from Apple rebadging electric cars 😂
  • Reply 12 of 13
    Never going to happen.  The only way the world will ever see an “Apple Car” is if they buy someone like Lucid.  No established player would bite because EVs are battery-constrained.  There is no space for Apple to take a 10-15% margin on a car.  As much as I am an Apple fan (of sorts anyway), whatever Apple produces or has produced will be a 1.0 product, just like the iPhone or iPad, and will be sorely lacking in delivered features.

    If Apple has any innovation left in their DNA, they need to find an innovation in transportation itself and not just make another car.
    edited February 16
  • Reply 13 of 13
    fred1fred1 Posts: 840member

    If Apple has any innovation left in their DNA, they need to find an innovation in transportation itself and not just make another car.
    I couldn’t agree more. Apple is better than just making improved versions of existing products, although of course their improved versions are much better.
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