Apple Could Be Looking At More Partnerships In EV Quest: Analyst - Apple (NASDAQ:AAPL)

With South Korean auto giant Hyundai Motor Company GDR (OTC:HYMTF) confirming that it's in talks with Apple Inc. (NASDAQ:AAPL) regarding an electric vehicle manufacturing partnership, an analyst at Wedbush sees many more tie-ups on the horizon.

The Apple Analyst: Daniel Ives has an Outperform rating and a $160 price target for Apple shares.

The Apple Thesis: Apple is likely in the early stages of talks with Hyundai, Ives said. The tech giant could be looking at a handful of strategic partnerships and collaborations globally, with existing automakers on the EV front.

The Hyundai news is in line with Ives' earlier expectation that Apple will ultimately announce a EV strategic partnership in 2021, laying the groundwork to enter the burgeoning EV space.

A potential larger strategic partnership with an established EV player such as Tesla Inc. (NASDAQ:TSLA) or Volkswagen AG (OTC:VWAGY) would be a golden partnership for the next decade tapping into this EV opportunity, the analyst said.

The chances of strategic partnerships with the likes of a Tesla, Volkswagen, Hyundai or other auto manufacturers in China such as XPeng Inc. – ADR (NYSE:XPEV) and Nio Inc. – ADR (NYSE:NIO) are in the 70%+ range over the next few years, Ives estimates.

AAPLApple Inc

$308.41-0.13%

Overview

HYMTFHyundai Motor Co GDR Repr 1/2 Non-Vtg Sh Reg-S

VWAGYVOLKSWAGEN AG UNSP/ADR by Volkswagen AG

$10.55-0.19%

XPEVXPeng Inc

$15.620.19%

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.