Car is coming, and it could be spectacular. At least, that’s what Citi analyst Jim Suva thinks.
In a deep-dive research note Friday, Suva writes that entering the automotive market could be the catalyst that drives Apple’s market capitalization to $3 trillion from $2 trillion. While there has been plenty of talk about an Apple car, the company hasn’t addressed the possibility, and has a policy of not discussing future product plans.
“Yes, we do believe Apple will likely make an Apple Car via outsourced production and that this will be part of the road for Apple to travel from a $2 trillion market cap to $3 trillion,” Suva writes.
He concedes that cars would have margins below the current corporate average, but thinks the returns to Apple would be