Gene Munster, a prominent analyst at Loop Ventures, believes Apple is at a crucial juncture following the reported cancellation of its Apple Car project. Speaking to CNBC, Munster expressed surprise at the move, cautioning that not all of Apple’s projects necessarily come to fruition. However, he emphasized the need for Apple to make a significant strategic move to sustain its growth trajectory.
“Apple’s a tech company, and tech companies by definition need to grow,” Munster stated, highlighting the imperative for Apple to explore new avenues for revenue growth. With Apple’s revenue currently standing at a staggering $400 billion annually, Munster pointed out that the company has not experienced top-line growth for the past six quarters, underscoring the urgency for a strategic shift.
See also: Apple to Cancel Electric Vehicle Project, Disbanding Special Projects Group
While acknowledging that Apple’s Vision Pro could hold potential, Munster noted that the company needs a substantial opportunity to replace the potential impact of an Apple Car. He suggested that acquiring an existing electric vehicle (EV) manufacturer, specifically Rivian, could be a viable option.
“Buying Rivian is ‘doable’,” Munster remarked, highlighting the alignment between Rivian’s offerings and Apple’s need to tap into new, sizable markets. Despite expressing disappointment over the apparent discontinuation of the Apple Car project, Munster stressed the importance for Apple to enter a significant new market to stimulate growth.
See also: Elon Musk Offers Blunt Advice to Rivian and Lucid Amid Financial Struggles
Notably, DJ Novotney, an Apple executive reportedly involved in the Apple Car project, recently joined Rivian in January 2024, further fueling speculation about potential collaboration between the two companies.
Munster’s comments reflect a broader sentiment regarding Apple’s growth potential. Loop Ventures has consistently predicted that Apple will achieve a $3 trillion market capitalization, despite previous setbacks such as the failed prediction of an Apple Television launch in 2017.
See also: Rivian Reports 2023 Financial Results: Net Loss of $5.4 Billion Despite Increased Sales
As Apple navigates its future strategic direction, the possibility of acquiring Rivian emerges as a potential game-changer that could redefine Apple’s role in the rapidly evolving EV market.
