The Auto OEM of the future will be vertically integrated across traditional automobile components, batteries and alternative power sources, software and chips.
- BYD (tkr: BYDDY) is a prime example of a vertically integrated Auto OEM given its Automotive and Battery operating segments.
- Ford (tkr: F), today announced it is partnering with GlobalFoundries (tkr: GFS), to develop chips. (Read about HERE).
- Apple (tkr: AAPL) given its multi-trillion dollar valuation and enormous cash flow generation capability has the resources to fully integrate (its already designing its own chips for iPhones and Macs), its Automobile effort. Further, Apple are masters at integrating hardware and software into a seamless unified experience which will provide a significant competitive advantage when it ultimately rolls out its Automobile to the general public.
- Amazon (tkr: AMZN) is a player via Rivian (tkr: RIVN) and will be a significant long-term automotive player as Amazon seeks to control operating expenses around its delivery fleet.
- Toyota (tkr: TM) and Panasonic (tkr: PCRFY) have a joint venture that develops solid state batteries.
- VW (VWAGY) partners with China-based CATL for its EV battery supply (Chinese companies control a majority of the world’s lithium producing mines).