The Apple “iCar” is just around the corner!
You may remember this spring we talked about a suspicious $8.5 billion transaction Apple made.
At the time, I told you that I was confident Apple Inc. (AAPL) would use the extra cash to build out its own line of Apple-branded self-driving cars.
Sure enough, Reuters reported this week that Apple has been secretly working on an automobile project since 2014. The effort, dubbed “Project Titan,” is now entering the final stages of development with vehicles expected to be produced in 2024.
I cannot wait to see these new vehicles!
If Apple’s sleek streamlined approach to its other products are applied to its vehicle design, we’re in for a real treat!
As an investor, I’ll tell you that we can’t afford to wait to invest in some of the plays that will benefit from Apple’s new “iCar” (or whatever they name the vehicle).
Today, I want to take a quick look at some of the plays you should consider investing in as Apple rolls toward the finish line for producing its own vehicle.
Profiting From Apple’s “iCar” Rollout
The first and most obvious way to profit from Apple’s “Project Titan” is to simply buy shares of AAPL.
Here at Rich Retirement Letter, we’ve been fans of AAPL for some time now.
The stock is also one of the best performers in my Lifetime Income Report dividend newsletter, with a total return of 345% since we purchased the stock five years ago.
Despite such a strong run, I still believe that AAPL can be a great long-term investment for your retirement account. The company is wildly profitable, has a tremendous amount of cash, and has ground-breaking new products in its pipeline.
Thanks to new initiatives like its vehicle project, Apple’s profits should continue to grow over time.
And thanks to Apple’s huge cash balance near $200 billion, the company should also be able to pay larger future dividends to investors. That’s great news for your retirement account!
I would, however, add one word of caution…
Shares of AAPL have run up quite a bit in the last few years. And the company now makes up about 6.4% of the S&P 500.
As you know, I’m concerned that a shift out of large-cap tech stocks and into some of the smaller companies with growth opportunities could put pressure on big stocks like AAPL.
So I would use a bit of caution adding new shares of AAPL at this point. You might get a chance to invest at a cheaper price in a few months!
But there are certainly other stocks that could benefit greatly from Apple’s foray into designing and manufacturing new cars.
For the Biggest Profits, Look for Partners and Buyouts!
As Apple gets ready to launch its new line of cars, the company is going to need a lot of help!
We’re already seeing some brinkmanship in play. Two years ago, Apple rehired Doug Field, a veteran manager who left Apple to work at Tesla.
In hindsight, it looks like a brilliant move as this executive left Apple to gain insight on how Tesla develops the very best electric vehicles in the world — and at a price point that puts these vehicles within reach of middle-class workers around the world.
Now that Field is back with Apple, the “iCar” can benefit from some of the best processes that Tesla CEO Elon Musk has worked so hard to put into practice.
If AAPL can legally poach managers and technical know-how from the best electric vehicle manufacturer in the world, you can bet they’re looking for advantages from other tech companies as well.
One of these names that I’ve been watching this year is Aptiv PLC (APTV).
This stock was actually recommended to members of my Buyout Millionaires Club trading newsletter in May. And since then, the stock is up 69% from our recommended price.
Members who bought our more aggressive “Tier 2” options play were able to lock in gains of 110% over just two weeks on the first half of their play.
APTV makes everything a self-driving car needs to function, including cameras, radar, LiDAR (essentially radar that measures distances using light instead of radio waves), GPS and a communication system.
To date, Aptiv has launched over 10,000 autonomous vehicles, which makes them the perfect design and manufacturing partner for AAPL.
I wouldn’t be surprised if Apple bought out Aptiv, paying something between $40 billion and $60 billion to own this entire technology company.
Doing this would not only allow Apple to use all of Aptiv’s technology for itself. It would also lock out future competitors from using Aptiv’s systems and products.
Shares of APTV still look very attractive on their own and could give investors a large overnight pop if Apple were to announce a buyout in the weeks ahead.
Of course, we’ll continue to watch for other opportunities to profit from Apple’s “Project Titan” as it rolls out.
2021 is looking like the year retirees will be able to build their wealth from a new generation of self-driving electric vehicles!