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Why Wedbush Expects Apple To Find An EV Partner In 2021

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Why Wedbush Expects Apple To Find An EV Partner In 2021

Rumors concerning Apple Inc (NASDAQ: AAPL) forging a partnership with one or more partners on an electric vehicle project are flying. 

The Apple Analyst: Wedbush analyst Daniel Ives has an Outperform rating and $175 price target for Apple shares, with the bull-case price target at $225.

2021 Could Be The Year: With talks with Nissan Motor Co Ltd (OTC: NSANF) falling apart, it is all part of a detailed process en route to Apple picking its EV and autonomous partner, Ives said in a note.

Wedbush assigns an 85%-plus chance of Apple announcing a partnership/collaboration over the next three to six months following the EV dating game, the analyst said. 

Given the aggressive EV endeavors recently announced by General Motors Company (NYSE: GM), Ford Motor Company (NYSE: F) and Jaguar, and a Biden-driven green tidal wave, now is the time for Apple to dive into the sector, he said. 

Related Link: 10 Things Apple Investors May Wish For In 2021

Potential Apple EV Partners: A potential larger strategic partnership with an established auto player such as Hyundai Motor Company GDR (OTC: HYMTF), Tesla Inc (NASDAQ: TSLA), Ford, Nio Inc – ADR (NYSE: NIO) or Volkswagen A G Unsponsored Represent 1 10th Sh ADR (OTC: VWAGY) would be a golden partnership for the next decade, Ives said. 

Hyundai could a perfect partner for Apple, given its huge production capabilities via its proprietary E-GMP Electric Global Modular Platform, the analyst said.

The Korean automaker's distribution and modular and robotic assembly design would fit well with Apple's software/autonomous integration capabilities into a new EV model, he said. 

If the Hyundai partnership doesn't materialize, the next best candidate would be Volkswagen, with its Modular Electric Drive Matrix, a next generation design framework that would allow easy integration of new models, Ives said. 

See also: How To Buy Apple Stock

Volkswagen-backed Quantumscape Corp's (NYSE: QS) and its solid state battery technology could be a major differentiator, the analyst said.

Apple, with the right partner, would be a major force in the EV industry and could disrupt market share from the likes of Tesla, GM and Ford if the company is able to get an Apple Car on the road by 2024, in Wedbush's view. 

AAPL Price Action: Apple shares lost 1.61% in Tuesday's session, closing at $133.19. 

Related Link: Apple Is Better Off With Cryptocurrencies Than EVs: Analyst

Photo by Daniel L. Lu via Wikimedia

Latest Ratings for AAPL

DateFirmActionFromTo
Apr 2021Morgan StanleyMaintainsOverweight
Mar 2021UBSUpgradesNeutralBuy
Mar 2021Evercore ISI GroupMaintainsOutperform

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