Apple changed the world.
They’ve revolutionized computers, smart gadgets, introduced iPods and iPads, television, watches, apps, cameras, cloud services you name it.
No wonder Apple is a $2.53 trillion company.
Now, they’re getting serious about an Apple Car. While we don’t know much about it just yet, we do know it could be a massive game-changer in a $2 trillion industry. In addition, we’re also learning, per Appleinsider that:
- The Apple Car could be a self-driving EV and could launch by 2024
- Apple wants car batteries manufactured in the U.S.
- Windshield could be used for augmented reality display
- LG and Magna International could win an “Apple Car” contract
Of course, that’s all speculation at the moment—but it all sounds exciting. In addition, should the Apple Car become reality, here are some of the top stocks we believe could accelerate.
Opportunity No. 1 – Aptiv (APTV)
An intelligent car from Apple could lead to potential business for Aptiv, whose self-driving technology would be required for full autonomous driving.
In early 2021, Aptiv unveiled its next-gen platform for automated driving, says Reuters, “which can be used across a range of vehicles and be updated wirelessly so carmakers can upgrade car features and fix glitches. In 2019, Hyundai and Aptiv launched a $4 billion venture called Motional to develop self-driving technologies and be among the first to deploy fully autonomous cars on public roads.”
Analysts love the stock, too. Deutsche Bank just raised its target price to $176 with a buy rating. Barclays raised its target to $174 with an overweight rating. Jefferies raised its target to $182.
Opportunity No. 2 – Luminar Technologies (LAZR)
Lidar stocks, like Luminar Technologies soared the last time Apple said it was working on a car. With renewed talk of an Apple car, we could see the stock pop again.
Lidar is an essential piece of the self-driving puzzle. It’s what allows their computers to take a 3D image of the area around them. The sensors can then measure the range or speed of objects, bounce lasers off the objects, and be able to calculate its distance to the car. Essentially, it’s the eyes and ears of autonomous vehicles, and helps the car avoid hitting people, animals, and other cars.
According to Forbes, Luminar “is focused on building sensors that can be used in mass-market vehicles. The company’s sensors are expected to hit the sweet spot for automakers, costing under $1,000 per unit while offering very strong performance relative to their price.”
In addition, Luminar Technologies expects to have its products on cars by 2023. Plus, Volvo recently announced Luminar lidar would be standard on its electric vehicles.
Opportunity No. 3—Magna International (MGA)
Over the last year, shares of Magna International exploded from a low of about $25 to a high of $103.74. Since then, it pulled back to support around $80, where it’s starting to pivot higher. The last time we were excited about the MGA stock was when Apple was reportedly close to signing an auto manufacturing deal with it.
While those talks petered out, there’s new speculation it could happen ahead of a potential Apple car launch. In fact, in April 2021, the Korea Times reported Apple was near signing a deal with Magna International and with tech giant LG.
As noted by The Drive, “The move would make sense, as Apple has a long-standing relationship with LG, which has supplied LCD screens and other components for the company’s smartphone lines in the past. Similarly, teaming up with Magna, a well-established contract manufacturer in the automotive business, is also a logical move.”
Opportunity No. 4 – QuantumScape Corp. (QS)
Beaten down shares of QuantumScape could get charged up again with an Apple Car.
Last December, the stock exploded to a high of $132.73 on speculation Apple could EV production by 2024, powered by a “breakthrough” monocell battery design. If talk of an Apple car heat up again, perhaps QS could see upside on speculation.
After all, according to Yahoo Finance, “QuantumScape’s data showed its battery cell could charge to 80% of capacity in 15 minutes. Further, it retains more than 80% of its capacity after 800 charging cycles, is non-combustible and boasts nearly double the energy density of high-end commercial lithium batteries.”
“QuantumScape may have developed the battery that addresses some of the biggest problems with electric vehicles: speed to charge and safety. And secondarily, the company’s battery breakthrough may be leveraged across other commercial applications,” they added.
Opportunity No. 5 – Lumentum Holdings Inc. (LITE)
Apple has already said it may use augmented reality on windshields.
According to Apple Insider:
“The windshield of Apple Car may present the driver with an augmented reality view for lane control, hazard avoidance, and otherwise obscured details of the environment. Apple has previously been researching how a heads-up display (HUD) could project information onto the Apple Car windshield. Now it’s examining just what that information should be, and when exactly to display it.”
That could potentially be big news for Lumentum Holdings – a key Apple partner, which could benefit from the rollout of an Apple car, as well.
According to Forbes, Lumentum “is the largest supplier of 3-D sensing laser diode — a tech is critical to future AR applications. This means Lumentum is in the sweet spot. Its best customer is ramping up AR. If history is any indication, Apple competitors will follow. The potential smartphone market outside of iPhone is 4x. Add cars and factory robots and new market may be billions of devices.”
Opportunity No. 6 – Albemarle Corporation (ALB)
If an Apple Car is on its way, we can’t overlook lithium.
At the moment, Apple is reportedly exploring the use of lithium iron phosphate (LFP) batteries, which could be cheaper, safer, and far less prone to overheating. Plus, according to The Financial Star, “These batteries will have an energy density of about 50% higher than that of the current generation. This means that the battery packs more power per pound of weight.”
When and if Apple does decide to roll out an Apple Car, lithium prices could explode even higher on severe supply-demand issues. In fact, with lithium demand rising faster than expected, what we’re beginning to see is the potential for long delays in production. Worse, there’s no telling how long EV auto makers will have to deal with inadequate supply, which could send lithium prices even higher.
That being the case, one of the standout winners here could be Albemarle (ALB), which has plans to double its lithium production at its facility in Silver Peak, Nevada.
Opportunity No. 7— Global X Lithium & Battery Tech ETF (LIT)
Or, if you’re looking for broader exposure to the lithium market, you can always pick up the Global X Lithium & Battery Tech ETF (LIT), which invests in the full lithium cycle. Some of the ETFs top holdings include Albemarle, BYD Co., Tesla, LG Chem Ltd., Livent Corporation, and dozens more, offering solid diversification among top lithium and battery tech names.
