No, Apple shouldn’t buy Rivian; it should move on from the Apple Car

Yesterday, it was reported/rumored that Apple is abandoning its decade-long Apple Car project and moving some of the project’s team to artificial technology projects. Now analyst Gene Munster says Apple has to make a big move after cancelling the Apple Car, and that buying Rivian would be the answer.

The Sellers Research Group (that’s me) disagrees. I never thought Apple entering the electric/autonomous vehicle market was a wise idea. I feel that such a move would stretch the company too thin. I think Apple should concentrate all its efforts on its current line of hardware, software and streaming products/services instead.

However, Munster told CNBC that Apple’s a tech company, and tech companies by definition need to grow, and that’s the $400 billion question that they have.” Asked by CNBC host Brian Sullivan whether Apple should buy an existing EV manufacturer, Munster said that buying Rivian is “doable.”

“And I think it does line up, Apple could do this, and I think that that would get them into that bigger market,” he said. “I’m disappointed that this turn in events, and so I don’t want to be predicting that they’re going to ultimately do something like this. But I do think Apple needs to break into some new market, they need to do something big, and potentially Rivian would be just the answer to that.”

Interestingly, two members of the Apple Car team departed this year to join Rivian. DJ Novotney left to become senior vice president of the company, which makes electric SUVs and pickup trucks. Jonas Reinke also joined Rivian in January o help launch the company’s new EV platforms.