If Apple strikes a deal with an established electric car company like Tesla, Volkswagen or Nio, it would be a "golden partnership" for the next decade tapping into the EV opportunity, Wedbush analyst Daniel Ives said in a report.

Apple has been working on a driverless car vision for years, and Ives predicts the company will ultimately announce an electric vehicle strategic partnership in 2021 that lays the groundwork to enter the burgeoning EV space.

Conversations with investors over the past few days have convinced Ives that building partnerships is a better option for Apple than producing its own cars and building factories.

Apple is expected to have a more than 70 percent chance of forming partnerships with automakers such as Tesla, Volkswagen or Nio, and Xpeng Motors in the coming years.

Ives said that seizing the opportunity of the new era of electric vehicles is a smart strategic move because the electric vehicle market could end up being a $1 trillion opportunity over the next decade.