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Apple is likely to announce a strategic partnership for electric vehicles in 2022 to lay the groundwork for issuing the “Apple Car” in 2025, according to investment bank Wedbush.
In a note to investors they saw AppleInsider, leading Wedbush analyst Daniel Ives offers little color in recent reports that Apple is accelerating the development of its autonomous vehicle. Ives says the report is “very much in line with our thinking.”
According to the analyst, Wedbush still believes that the question is when – and not whether – Apple will announce a self-driving car. Ives adds that the company’s entry into the car market could add $ 30 per share of the total addressable market to Apple’s growth story.
On the timeline, Ives believes there is a 60% to 65% chance that Apple will introduce its own standalone vehicle by 2025.
“Over the last seven years, we’ve seen a lot of twists and turns in Apple’s automotive ambitions,” Ives writes. “The Titan project, as it is known in Cupertino’s halls, was eventually significantly reduced compared to its initial ramp a few years ago and now seems to be back in front and in the center of the radar screen discussing the introduction of the Apple Car 2025.”
The analyst still believes that Apple will announce some kind of strategic EV partnership in 2022, as such a collaboration will be the “first step” for the Cupertino juggernaut.
“We would rather see an Apple partner on the EV path than start building our own vehicles / factories given the implications of the margin and financial model below, along with the strategic product risk associated with such a huge undertaking,” Ives writes.
Ives maintains its target price for Apple of $ 185, which is based on a cumulative estimate of parts according to analysts ’estimates for 2022. This includes a 16x multiple increase on services of $ 1.3 trillion and a 7x multiple on Apple’s hardware business of 2.1 trillion dollars.
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