AAPL
Apple seen partnering in electric vehicles with Tesla, Volkswagen or Nio
- More electrifying stuff out of the EV sector as Wedbush Securities
analyst Dan Ives tips this morning that the firm believes Apple (NASDAQ:
AAPL) will ultimately announces an electric vehicle strategic
partnership in 2021 that lays the groundwork to enter the burgeoning EV
space.
- Ives notes that Apple has been working in Cupertino for years around
the autonomous vision and believes a potential strategic partnership with
an established EV player such as Tesla (NASDAQ:TSLA) or Volkswagen (
OTCPK:VWAGY) would be a "golden partnership" for the next decade tapping
into the EV opportunity.
- "We believe based on our investor conversations over the last few days
that many on the Street would rather see Apple partner on the EV path,
than
start building its own vehicles/factories given the margin and financial
model implications down the road, coupled with the strategic product risk
around such a gargantuan endeavor. This speaks to our view that the
chances
of a strategic partnerships with the likes of a Tesla, VW, or other auto
manufacturers in China (e.g., Nio, Xpeng) are in the 70%+ range over the
next few years and could lay the groundwork for a dual path (start
building
its own line of EV autos post 2025) over the next decade if this
EV/autonomous venture is successful with consumers. This is similar to
our
view of what Chinese tech stalwart Baidu ultimately embarks on in the
form
of a strategic EV partnerships/collaboration in China as opposed to
launching its own auto product line right out of the gates. In a
nutshell,
this would only expand the massive TAM for Apple over time to go
aggressively after the EV market, however as we have seen in decades of
following Apple many products/strategic ideas happen in the labs of
Cupertino that ultimately never leave the confines of Apple Park."
- Wedbush has an Outperform rating on Apple with a price target of $160.
Tesla is rated at Neutral and tagged with a 12-momnth price target of
$715
and bull case PT of $1,000.
- Compare Apple, Volkswagen and Tesla side by side.
- Yesterday, Elon Musk said he once reached out to Apple about a
potential takeover, but Tim Cook wouldn't take the meeting.
|Today, 7:47 AM|182 Comments
Apple seen partnering in electric vehicles with Tesla, Volkswagen or Nio
- More electrifying stuff out of the EV sector as Wedbush Securities
analyst Dan Ives tips this morning that the firm believes Apple (NASDAQ:
AAPL) will ultimately announces an electric vehicle strategic
partnership in 2021 that lays the groundwork to enter the burgeoning EV
space.
- Ives notes that Apple has been working in Cupertino for years around
the autonomous vision and believes a potential strategic partnership with
an established EV player such as Tesla (NASDAQ:TSLA) or Volkswagen (
OTCPK:VWAGY) would be a "golden partnership" for the next decade tapping
into the EV opportunity.
- "We believe based on our investor conversations over the last few days
that many on the Street would rather see Apple partner on the EV path,
than
start building its own vehicles/factories given the margin and financial
model implications down the road, coupled with the strategic product risk
around such a gargantuan endeavor. This speaks to our view that the
chances
of a strategic partnerships with the likes of a Tesla, VW, or other auto
manufacturers in China (e.g., Nio, Xpeng) are in the 70%+ range over the
next few years and could lay the groundwork for a dual path (start
building
its own line of EV autos post 2025) over the next decade if this
EV/autonomous venture is successful with consumers. This is similar to
our
view of what Chinese tech stalwart Baidu ultimately embarks on in the
form
of a strategic EV partnerships/collaboration in China as opposed to
launching its own auto product line right out of the gates. In a
nutshell,
this would only expand the massive TAM for Apple over time to go
aggressively after the EV market, however as we have seen in decades of
following Apple many products/strategic ideas happen in the labs of
Cupertino that ultimately never leave the confines of Apple Park."
- Wedbush has an Outperform rating on Apple with a price target of $160.
Tesla is rated at Neutral and tagged with a 12-momnth price target of
$715
and bull case PT of $1,000.
- Compare Apple, Volkswagen and Tesla side by side.
- Yesterday, Elon Musk said he once reached out to Apple about a
potential takeover, but Tim Cook wouldn't take the meeting.
|Today, 7:47 AM|182 Comments
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