Apple Inc.’s plan to build its own self-driving electric vehicle has been unveiled… It’s called “Project Titan” and the company is targeting a 2024 release.
When Apple moves into an industry, it tends to dominate it. But investors need to remember, it took Elon Musk 17 years before he could finally turn Tesla into a sustained profit-making business…
And even when Tesla figured out how to turn a profit, suppliers to Tesla were seeing monster gains. This is true across the whole automotive industry.
For example, in 2020, GM was a top “mainstream” performer. Shares went up about 15%. But tire maker Cooper Tires, on the other hand, easily doubled that performance, going up 31.5%.
Looking further upmarket, you can see Ferrari delivered a bit more in the markets, up 36.2% in 2020… But chipmaker Nvidia, whose parts make all of Ferrari’s sleek features work, easily outpaced the automaker, more than tripling Ferrari’s move by gaining 115%.
And even too-hot-to-handle Tesla… which shot up 695% in 2020… Was soundly beaten by Blink, who makes their electric vehicle chargers. In 2020, Blink’s stock nearly pulled off a 4x trounce of Tesla when shares rocketed up an eye-popping 2,381%.
Now, Apple is a very good stock, and a good part of any portfolio, but as you can see, the real money isn’t in the cars… it’s in the parts.
And there’s one thing that makes this opportunity way more exciting than Tesla…
Tesla is a cash-poor business – meaning compared to the size of the company, they don’t have a lot of spare cash lying around for research and development.
That’s not true for Apple. As of their most recent financial statement, the company is sitting on $194 BILLION in cash.
So that likely means plenty of money will be flowing to its car suppliers. And we’ve spotted two prime candidates to become just that.
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