Wedbush Securities analyst Daniel Ives believes that it’s a matter of “when not if” Apple (NASDAQ: AAPL) will enter the electric vehicle (EV) market.
In a note to investors seen by AppleInsider, Ives says that recent reports of Apple being in process of signing a memorandum of understanding for the manufacturing of its EVs with South Korean electronics giant LG, as well as Canadian-based automotive supplier Magna International, are a good indication of Cupertino working toward a strategic EV partnership or collaboration which could come in the next 3 to 6 months.
The analyst, who has an “Outperform” rating on AAPL with a $175 price target, 31.5% higher from ticker’s current price, also noted recent rumors of Japan’s Nissan expressing interest to work with Cupertino on its long-rumored autonomous car project as further evidence of Apple’s EV “dating game.”
“We continue to strongly believe Apple ultimately announces an EV strategic partnership in 2021 that lays the groundwork to enter the burgeoning EV space,” Ives writes.
Apple’s intentions to enter the EV market came to light at the end of 2020 with the company aiming to get an electric car rolling on the streets by 2024.
The iPhone maker is reportedly developing an autonomous vehicle using proprietary battery technology.
As of writing, Apple shares are down $1.25, or 0.93%, to $133.57. The $2.2 trillion market cap company trades at 31X forward 12-month EPS estimates. Trailing-12 P/E prints above 36X. Apples’s 52-week range: $66.36 – $145.09.