Why Electric Vehicles Could Be the Next Huge Catalyst for Apple Stock

Five ways Apple could dominate the electric car market, and why should you jump on for the ride.

electric charger in vehicle

In short, electric vehicles are just one more reason to buy Apple stock.

We know that Henry Ford didn’t invent the automobile. Rather, he took a machine that was merely the interest of curious hobbyists and made it available to everyday Americans.

And we also know that Steve Jobs, the co-founder of Apple Inc. (AAPL), didn’t invent the personal computer. He simply took a machine that appealed to a specific niche and made it mainstream.

And ever since, Apple has proven again and again to be more curator than inventor. It takes an idea, refines and improves it, and creates a premium product that’s accessible to the average consumer.

Apple is Getting into the EV Market With Five Major Advantages
Could electric vehicles (EVs) be Apple’s next big target? It’s rumored to start production in 2024 with “next level” battery technology.

If Apple succeeds, it will dominate the auto industry of the future as Henry Ford dominated the early 20th century. Here are five reasons it has a chance.

  1. Innovation. The company has a longstanding culture of innovation. And with its recently acquired employees, it’s ready to capitalize on the rapidly advancing battery industry and manufacture the ultimate EV battery that will offer both relative affordability and unprecedented range. The Apple car will likely boast a wide array of technological advances, perhaps even the rumored autonomous driving capability.
  2. Design. Former Apple design folk hero Jony Ive is a well-known car enthusiast and has been rumored to frown upon the “tasteless” auto designs of Detroit. The Apple team may be able to apply his signature design principles to create a truly distinctive and premium product.
  3. Integration. Apple is one of the most powerful brands in the world. Between its advertising power and horde of groupies, the company instantly garners immense media attention. Plus, an electric vehicle will likely operate seamlessly within the Apple ecosystem, adding to its appeal. And as the king of affordable luxury, Apple’s products are priced highly enough to make them premium, but not so high as to make them inaccessible to most Americans.
  4. Capital. Perhaps most importantly, Apple could win the EV battle because of its enormous cash reserves. The tech giant could leverage its war chest to scale up in even the capital-intensive auto industry. And if it applied that cash hoard toward the EV industry, who’s to say it can be stopped?
  5. Market Interest. The final reason why Apple may make the plunge is the overlap between the market for Apple products and electric cars, giving users one more opportunity to express their Apple brand loyalty.

Even better, since the car is likely to be self-driving, that opens up a whole new slate of opportunity for Apple to offer its products directly to drivers. Music, videos, movies, even games—drivers will be looking for new distractions while their cars take them wherever they want or need to go.

If you have not yet invested in Apple, is the EV market enough to convince you to buy at an already high price tag?

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