Apple Car: Could This Little-Known Canadian Company Help Build It?

Could we be near an Apple Car announcement? According to analyst Dan Ives, we could be. Magna (TSX:MG)(NYSE:MGA) is the horse I’d bet on.

| More on:
Shopping card with boxes labelled REITs, ETFs, Bonds, Stocks

Image source: Getty Images.

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

The Apple (NASDAQ:AAPL) Car rumour mill has been swirling again after months of fading into the background. An accurate analyst Daniel Ives of Wedbush Securities, was recently on CNBC saying that he believes that Apple may announce information to “lay the groundwork for an Apple Car.” Daniel Ives is one of the biggest bulls on Apple stock, and when the man speaks, it can pay to listen up.

Korean newspaper Korea Times also reported that the joint venture between LG-Magna International (TSX:MG)(NYSE:MGA) is “very near” to inking a contract with Apple, which seems to align with the announcement timeline of Mr. Ives.

The latest Apple Car rumours are intriguing

Now, I have no idea if Apple is, in fact, close to signing the dotted line with any firm to help it build an autonomous EV (electric vehicle). Even if CEO Tim Cook was close to inking a deal, there’s a chance that he may back out or opt to keep things under wraps. Apple is a highly secretive company, but Cook hasn’t denied that his firm is building a car. The man dropped a few hints about an Apple Car, but nothing was explicit. So, nobody really knows what’s going on behind closed doors at the largest company on the planet.

Clearly, Apple is all about secrecy. But the Apple Car may be too big a project to keep under wraps. Speculation on “Project Titan” has been going on for many years now. Yet, nothing has come of it thus far. Although the rumour mill has been going strong, Apple has done a great job of keeping the timeline and progress of its EV plans a secret.

That’s why many analysts are throwing darts at a board with the expectation of when the car will arrive. Many folks are betting that production will begin in 2024. Others think that 2028 is a more realistic target. I don’t think there’s nearly enough publicly available information to know when or if the Apple Car will land and if it’ll be fully autonomous. As such, rumours and hearsay should be treated as just that.

The top contender to build the Apple Car?

If you’re keen on speculating on an Apple Car announcement and think Mr. Ives is right on the money about a potential announcement over the coming months, I think Magna is the best horse on which to bet. I think the Canadian auto part maker is by far the best candidate on a long list.

Magna, which has build autos in the past, is more in the business of building auto parts and assisting firms looking to develop their own vehicles. As a helping hand and a non-traditional name in the auto scene, I think there will be less “brand clash,” as Apple is likely keen on making its car its own, not just an Apple-flavoured version of another automaker’s car.

If The Korea Times report is true and Apple is close to signing with LG and Magna, I think Magna stock could face a massive re-valuation to the upside.

Apple isn’t just another tech company looking to dip its toes into the EV waters. It’s a powerful, disruptive force to be reckoned with. And if I were Elon Musk, I would be frightened if Apple were to announce its decision to get into the booming EV market.

Foolish takeaway

Even if nothing comes of recent rumours, reports, and speculation, Magna stock is still cheap. And I do think it will win the business of a tech behemoth who’s hungry for a share of the EV market. Whoever it’ll be, I’m sure Magna will deserve to trade a much higher multiple, as it could play a huge role in the next generation of autonomous and electric autos.

As for Apple and a car announcement, I’d say it’s unlikely to happen this year. But who knows? Mr. Ives has a track record of successful calls when it comes to Apple. And he could very well be right on the money.

Stay Foolish, my friends.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette owns shares of Apple. David Gardner owns shares of Apple. The Motley Fool owns shares of and recommends Apple. The Motley Fool recommends Magna Int’l and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple.

More on Tech Stocks

A stock price graph showing growth over time
Tech Stocks

3 Cheap Growth Stocks to Buy Right Now

Given their growth prospects and cheaper valuations, these three TSX stocks could deliver superior returns in the long run.

Read more »

Overhead shot of young adults using technology at a table
Tech Stocks

3 Stocks I’m Buying During a Tech Stock Correction

Tech stocks like Constellation Software (TSX:CSU) should be on your radar.

Read more »

financial freedom sign
Tech Stocks

$5,000 Invested in These 3 Stocks Could Make You Rich Over the Next 20 Years

Are you looking for stocks that could carry your portfolio over the next 20 years? Here are three top picks!

Read more »

potted green plant grows up in arrow shape
Tech Stocks

This Growth Stock Rallied 20% Yesterday, But it’s Still Cheap!

This growth stock is a great value. The 20% rally indicates the company has executed well and has potential for…

Read more »

Target. Stand out from the crowd
Tech Stocks

Down 70%, This Could Be the Best Stock-Split Stock in Canada to Buy and Hold Forever

This is arguably be the best stock-split stock to buy right now, as it has the potential to multiply your…

Read more »

Growth from coins
Dividend Stocks

What’s More Effective: 1 Growth Stock or 1 Dividend Stock for High Returns?

Let's settle the age old debate. If you had invested in a huge growth stock or a solid dividend stock,…

Read more »

Money growing in soil , Business success concept.
Tech Stocks

Forget BlackBerry Stock: Buy This Growth Stock Instead

BlackBerry (TSX:BB)(NYSE:BB) stock is up over 30% in the last two months, but is it all due to meme stock…

Read more »

Plant growing through of trunk of tree stump
Tech Stocks

Buy the Dip: 2 Top Growth Stocks That Could Turn $5,000 Into $25,000

Investors can consider buying growth stocks such as Shopify that are trading at a discount to their historical valuation.

Read more »