Charged: Apple, Hyundai-Kia Said To Be Close To 'Apple Car' Deal

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In this latest edition of "Charged," we look at some analysts' notes, news and activity in the electric vehicle and clean energy space.


Apple (AAPL) is near finalizing an agreement with Hyundai-Kia (HYMTF) to make an Apple-branded autonomous electric car at the Kia assembly factory in West Point, Georgia, CNBC's Phil LeBeau and Meghan Reeder reported, citing multiple sources. The so-called "Apple Car," which is being developed by a team at the U.S. tech giant, is tentatively set to enter production in 2024, though the eventual launch could be further delayed, the authors say, citing people familiar with the talks. No deal has officially been reached between the two companies, the authors noted.


On Monday, Piper Sandler analyst Alexander Potter raised the firm's price target on Tesla (TSLA) to $1,200 from $515, while keeping an Overweight rating on the shares. 2020 was a breakout year for Tesla, but the "fireworks aren't over," Potter told investors in a research note. The analyst believes that even after a 10-times return over the past 12 months, investors should not be selling this stock. Potter's forecast for Tesla now implies 894,000 vehicle deliveries in 2021, eventually ramping to 9M-plus units in 2030. This level of production would rank Tesla among the top-three auto makers globally, he added. More important, the analyst argued that the company will see a steady ramp in full self-driving software adoption starting in 2030, with 50%-plus of all Tesla owners using the full self-driving package by the end of the 20-year forecast period. Potter believes this should have a big impact on margins, with Tesla's EBIT margin eventually exceeding 40%. Further, by the 2030s, he expects Tesla Energy to represent 20%-30% of revenue versus 6% today. Tesla is targeting "multi-trillion-dollar markets" so there "will always be new levers for growth," the analyst pointed out.


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William K. 2 months ago Member's comment

Thanks for the detailed reporting. But to throw some water on the fire, the computer driven cars will be a non-starter for two reasons: First, the improvement in safety is non-existent for most people, since most people never are involved in an accident, and if they don't hate to drive there is no other reason to pay so much extra for a very expensive add-on. And the bigger reason is that computer driven cars will never have adequately good software, because the cost of a proper evaluation is far to great.

And the really big challenge for electric vehicles will happen as the number grows and it becomes clear that there is not enough power to charge them all. THAT is the fatal flaw in the concept that is very seldom mentioned, since it is a serious show-stopper.