A brand new report from Wedbush analyst Dan Ives says that Apple and Tesla stand to lose greater than most within the ongoing ‘Chilly Tech Battle’ raging between the U.S. and China.
Tesla and Apple stay within the crossfire on the continuing Chilly Tech Battle. Whereas the present tensions have many implications for US corporations/shoppers, the 2 US corporations disproportionately impacted by this Chilly Tech Battle are clearly Apple and Tesla. Apple has practically all its iPhone manufacturing inside China as a part of its flagship Foxconn manufacturing facility and Chinese language shoppers characterize roughly 20% of all iPhones bought worldwide. Tesla however has constructed its flagship Giga manufacturing facility in China with the nation poised to characterize ~40% of all world deliveries bought by 2022. To this point, the bark has been worse than the chew relative to the backlash and unfavourable affect on each Apple and Tesla in China, nevertheless this stays a transparent threat within the broader US/China brewing Chilly Tech Battle
Based on Ives, its heavy reliance on China for its manufacturing of units just like the iPhone 12, in addition to its massive income base within the nation might serve to trigger some concern, nevertheless, he notes that the “bark has been worse than the chew” by way of materials affect to this point. He says the problem stays a “clear threat”.
Ives retained an ‘outperform’ ranking for Apple’s inventory value, setting an bold goal of $185, it’s presently buying and selling round $126.