2 Tech Giants Jumping Into The Electric Vehicle Industry: Apple And Baidu

Apple logo in front of a building

The electric vehicle (EV) industry has performed remarkably well amid pandemic-induced economic disruptions. The accelerating shift globally towards digitization, connectivity, and automation has tempted several tech giants, including Baidu (BIDU) and Apple (AAPL), to jump into the electric vehicle industry. So, we think these stocks should be good additions to your portfolio.

The ongoing electric vehicle (EV) boom is expected to revolutionize the global automotive industry as people shift increasingly to EVs in response to a rising awareness about climate change. While the coronavirus pandemic-induced lockdown brought economic activity to a near stand-still last year, the EV industry outperformed the broader market. This is evidenced by KraneShares Electric Vehicles and Future Mobility Index ETF’s (KARS) 81% returns over the past year.

As a result, many tech giants are seeking to capitalize on the booming electric car market and are investing significantly in this space.

Baidu, Inc. (BIDU - Get Rating) is currently working on its own EV and has teamed up with Geely (GELYY) in the endeavor, while  Apple Inc. (AAPL - Get Rating), has reportedly partnered with Hyundai to manufacture EVs. Considering these developments, we think these stocks should be good additions to your portfolio now.

Apple Inc. (AAPL - Get Rating)

With a market capitalization of more than  $2.20 trillion, AAPL has been one of the best performing technology companies for quite some time. Its proprietary gadgets include iPhone, iPad, Mac, Apple Watch, and Apple TV.

According to recent news reports, AAPL is planning to resume its Project Titan to create the next generation electric car, the production of which is expected to begin by 2024. The project had been temporarily shelved after the tech-giant laid-off some 190 employees in 2019. Since cars have now become a big part of the tech industry, AAPL has reportedly  green-lighted the project to capitalize on the EV boom.

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William K. 1 month ago Member's comment

Certainly the electric vehicles do not produce tailpipe emissions, but rational folks should consider the question of "where does the energy to charge them come from, and how does it get in to the vehicle battery pack? The bad news is that it must be generated someplace and then travel through the power grid and finally reach a local charging point.

Now of course the EVs are that "Next Big Thing", and so the shares are rising in price, with value sort of following. But I see a less wonderful 'future with recharging being an expensive "big Deal"