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Winners And Losers From The Apple Car

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Winners And Losers From The Apple Car

• The potential arrival of the Apple Inc. (NASDAQ: AAPL) Car could produce several winners and losers in the auto industry.

• Trends such as connectivity, electric components and automation will likely continue to steer the auto industry.

• Apple will likely reveal very few details about the Apple Car throughout its development process.

While Apple is officially staying mum on the subject, Wall Street continues to speculate on the potential impact of the future rollout of an Apple electric car. In a new report, Morgan Stanley analyst Adam Jonas lists some potential winners and losers if and when an Apple Car is unleashed.

Winner: Tesla Motors Inc (NASDAQ: TSLA)

Jonas sees Tesla as well-positioned to capitalize on the electric car revolution and believes that the company could potentially contribute some intellectual property to an Apple Car as well. Tesla is Morgan Stanley’s top electric car-related stock pick.

Winner: Delphi Automotive PLC (NYSE: DLPH)

Jonas believes that Delphi would be a likely choice to supply the Apple Car with content such as ADAS, connectors and electrical distribution components.

Winner: Lear Corp (NYSE: LEA)

Jonas predicts that the Apple Car will emphasize passenger comfort and experience, including seats and interiors.

Winner: Magna International Inc (NYSE: MGA)

Jonas calls Magna’s Steyr vehicle assembly segment “the closest thing to the Foxconn of autos.” In addition, he sees a potential role in the Apple Car for Magna seating, doors, bodies and electronics.

Winner: Mobileye NV (NYSE: MBLY)

As cars continue to transition more toward automation, vision-based technology companies such as Mobileye will play an increasingly larger role in the auto industry

Loser: American Axle & Manufacturing Holdings Inc (NYSE: AXL)

Jonas believes that Apple Cars will likely be controlled by in-wheel motors, eliminating the need for American Axle’s products.

Loser: The Goodyear Tire & Rubber Co (NASDAQ: GT)

The good news for Goodyear is that the Apple Car will most certainly require tires. However, increasing automation could add significantly to tire lifespans.

Takeaway

The companies mentioned above are just some of the many companies that Jonas believes could be impacted both positively and negatively by the arrival of the Apple Car. However, with Apple’s reputation for secrecy, it’s likely that the world will know very little about the true nature of the Apple Car until it’s ready to roll out onto the highway.

Disclosure: the author holds no position in the stocks mentioned.

Latest Ratings for AAPL

DateFirmActionFromTo
Apr 2021Morgan StanleyMaintainsOverweight
Apr 2021Morgan StanleyMaintainsOverweight
Apr 2021Morgan StanleyMaintainsOverweight

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