Deepwater Asset Management’s Gene Munster has proposed that Apple (AAPL) should consider acquiring Rivian Automotive (NASDAQ: RIVN) following the recent cancellation of the Apple Car project.
Munster expresses surprise at Apple’s decision, emphasizing the need for the tech giant to grow, pointing out the absence of top-line growth in the last six quarters. Munster believes Apple should break into significant markets, proposing Rivian as a potential solution.
In an interview with CNBC, Munster states, “Apple’s a tech company, and tech companies by definition need to grow,” suggesting that acquiring Rivian is “doable” for Apple. He emphasizes that Apple must make a significant move to stimulate growth, and Rivian could be the answer.
Munster, who has consistently forecasted Apple’s ascent to a $3 trillion market capitalization, expressed disappointment at the cancellation of the Apple Car project. He believed it could have added $250 billion to Apple’s revenue annually, even with just a 10% market capture, contributing to a 60% increase in Apple’s overall business.
In a related development, DJ Novotney, a key executive behind the Apple Car project, recently joined Rivian in January, hinting at potential synergies between the two companies.
Meanwhile, Tesla CEO Elon Musk weighed in on Apple’s decision, reflecting on the challenges of managing an automotive company. He stated, “The natural state of a car company is dead,” underscoring the formidable obstacles associated with automotive endeavors.
Rivian’s stock fell by 35% over the past week, influenced by Musk’s comments on potential bankruptcy, despite Tesla bull Gary Black deeming the chances “very low.”
Rivian Automotive (NASDAQ: RIVN) Stock Reaction
RIVN stock inclined 1.44% to close at $11.30 on Wednesday. The traders had exchanged hands with 49,417,639 (49.41 million) shares compared to the average daily trading volume of 39.36 million.
