Gene Munster Suggests Apple Acquire Rivian Following Surprising Cancellation Of Apple Car Project

Deepwater Asset Management's Gene Munster thinks Apple Inc. AAPL should consider acquiring Rivian Automotive RIVN to fill the gap left by the recently canceled Apple Car project.

What Happened: Munster expressed surprise at Apple’s decision to cancel the Apple Car project. He suggested that as a tech company, Apple needs to grow, and acquiring Rivian could be a potential solution.

Speaking to CNBC, Munster said, “Apple’s a tech company, and tech companies by definition need to grow,” noting that Apple hasn’t seen top-line growth in the last six quarters. He proposed that Apple needs to break into big markets to stimulate growth.

When questioned about the possibility of Apple acquiring an existing EV manufacturer, Munster stated that purchasing Rivian is "doable."

He added, “I do think Apple needs to break into some new market, they need to do something big, and potentially Rivian would be just the answer to that.”

In a related development, DJ Novotney, an Apple executive who reportedly initiated the Apple Car project, joined Rivian in January.

See Also: Elon Musk Responds After X User Calls Cybertruck A ‘Hit’: ‘Until You Drive It, You Don’t Realize How Fun

Munster has consistently predicted that Apple will soon reach a $3 trillion market capitalization.

Why It Matters: The cancellation of the Apple Car project was a shock to many, including Munster, who believed that the project could have added about $250 billion to Apple’s revenue in a year, even if it had captured just 10% of the auto market. This would have increased Apple’s overall business by 60%.

Rival Tesla Inc. CEO Elon Musk reflected on the challenges of running a car company after Apple’s decision to halt its electric car project. He stated, “The natural state of a car company is dead,” highlighting the difficulties of maintaining an auto company.

Meanwhile, Rivian’s stock fell by 35% over the past week following Musk’s comments on the company’s potential bankruptcy, despite the chances of it happening being “very low,” according to Tesla bull Gary Black.

Given these circumstances, Munster’s suggestion of Apple acquiring Rivian could be a strategic move for both companies, providing Rivian with financial stability and Apple with a foothold in the auto industry.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read Next: Wedbush’s Dan Ives Says Apple’s Decision To Abandon EV Project Is ‘The Right Move’: ‘…Would Have Made This An Uphill Battle’

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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