To compete for market share in the EV market, GM, a traditional American auto manufacturer, formed a strategic alliance with Honda to build an EV model for them. The strategic alliance with Honda helps GM manufacture more EVs by having another company selling them in their respective market. By producing more EVs, GM can gain economies of scale in producing their models and advancing battery technology to improve their models.

I believe a strategic alliance between Tesla and Apple would be a beneficial partnership for both companies as Apple has teased investors about entering into the EV market. However, Apple is a tech company and for them to enter the high cost auto industry would decrease their current margins. Instead, Tesla EVs offer a prime opportunity for marketing what Apple already does really well, which is providing streaming music, apps, and other features associated with the iPhone. Integrating these products into Tesla vehicles would present a growth opportunity for both companies.