He reports it
wants to introduce a self-driving electric vehicle to the market by 2024 generating waves. Plans are unclear, sparking speculation on Wall Street this week about what an Apple car could mean.
the leader of EV, as well as the entire industry.
A lot of ideas are hovering around – for example, why Apple wants to be a car company, as well as how it could make that dream come true. One of the topics that constantly appears in the research notes is the partnership between Apple (label: AAPL) and some existing car manufacturer.
Apple declined to comment on its plans for the cars. If it’s cars, it’s probably because it’s one end market that’s bigger in terms of dollars than even phones.
Morgan Stanley analyst Adam Jonas wonders if Apple’s participation could make the global car market even bigger. “Before the iPhone, the global mobile phone market was one billion units in 2006,” Jonas wrote in a report Thursday on the survey. “By 2010, the global market was 1.6 billion.”
This was about 12% of the average annual growth rate in that range. If Apple could do that with cars, it would mean, roughly, 145 million light vehicles sold around 2028.
It’s an interesting idea, but unlikely. The modern car was invented more than 100 years ago. The smartphone was invented in 2006. Moreover, cars sell for an average of approximately $ 27,000. The new phones cost about $ 1,000. And cars last about 12 years, while phones are recycled after a couple. Automotive TAM – Wall Street’s fashion word for the overall addressed market – won’t blow with Apple’s entry.
Jonas also wrote earlier in the week that Apple’s entry into the car market could represent a “new bear case” for Tesla shares (TSLA) due to increased competition. But some see Apple’s entry as a victory for Tesla.
Wedbush analyst Dan Ives points out that cars are expanding Apple’s targeted market. “However, as we’ve seen in decades of monitoring Apple, many products / strategic ideas happen in Cupertino labs that end up never going beyond Apple Park,” he says. Barron’s. “We believe there is a much greater chance that this is a strategic EV partnership with those like Tesla” or Volkswagen (VOW. Germany).
The strategic partnership is something he believes is also Gary Black, a former Wall Street analyst and investor in Tesla.
Black is proposing that Apple take a stake in Tesla, and Tesla is accelerating the development of Apple’s car, saving it until 2022, not 2024. It’s a bit like Tesla is becoming for Apple in cars what Foxconn is for Apple in phones. (Foxconn assembles phones.)
It’s a speculative idea and Black is no longer a traditional analyst, but he is paying close attention to Tesla as well, with more than 34,000
followers, the influential voice of the stock.
RBC analyst Joseph Spak wrote that Apple has a brand and capital to make the car, but also believes it would redirect assembly. “All of this points to greater potential competition for traditional carmakers, for Tesla and some of the new EV startups,” Spak wrote on Monday. “To that end, we wonder if some traditional OEM would approach Apple or vice versa.” OEM is the jargon of the auto industry for the original equipment manufacturer
Spak doesn’t cover Apple, but he does cover Tesla. He rates the stock shares and targets him $ 339. Jonas rates Tesla shares Buy and is priced at $ 540. He set that price target in mid-November. Wedbush analyst Dan Ives estimates that Tesla’s share, which was recently set by Jonas, is $ 715 per share.
Tesla shares are down about 5% this week, to $ 662.54, after gaining about 14% a week earlier ahead of his involvement in
Apple shares rose nearly 5% this week, to $ 132.33. S&P is down 0.2%, and
Dow Jones industrial average
is an apartment.
Write to Al Root at [email protected]