Apple Could Partner with Chinese Automakers Nio or Xpeng, Analyst Says

As Apple is stepping into the automotive world where electric cars have already booked the places. Analyst at Wedbush Securities predicts that Apple will be announcing a partnership with some renowned automakers. They could be Tesla, Volkswagen, or some other manufacturing brands in China such as Nio and Xpeng. It makes sense for Apple Auto to enter into EV space.

“We believe based on our investor conversations over the last few days that many on the Street would rather see Apple partner on the EV path, than start building its own vehicles or factories given the margin and financial model implications down the road, coupled with the strategic product risk around such a gargantuan endeavor,” Ives said.

Why Apple Auto need this?

There’s a great chance for this particular partnership of apple with Chinese brands. This way Apple has more chance of making its value in this market in establishing their own EV vehicles. On the other hand, if Apple decides to make it a solo run, things would get difficult for them in automotive world.

“This is similar to our view of what Chinese tech stalwart Baidu ultimately embarks on in the form of strategic EV partnerships in China, as opposed to launching its own auto product line right out of the gates,” Ives said. “In a nutshell, this would only expand the massive total addressable market TAM for Apple overtime to go aggressively after the EV market.”

As we have already talked about the upcoming Apple Auto that features some promising things. The things that could change the automotive world. They claimed that the car will have a computer, a perfect battery. And by perfect they mean perfect, they said that it would generate a longer range. Read the full story here.

Considering these facts, it doesn’t seem impossible when you think about it. So, let us know what you think? Will Apple need this? Or they’ll decide to go solo. Let’s talk.

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