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Hyundai to Work with Apple on Self-Driving Electric Car, Stock Jumps 20%

UTC by Bhushan Akolkar · 3 min read
Hyundai to Work with Apple on Self-Driving Electric Car, Stock Jumps 20%
Photo: Shutterstock

Apple and Hyundai can possibly release a “beta-version” of the car by 2022 and it will go into full-scale mass production by 2024. A Hyundai Motors spokesperson has subtly revealed that the two companies are in talks.

South Korean automobile giant Hyundai Motor Company (OTCMKTS: HYMTF) is planning to soon sign a partnership deal with tech-giant Apple Inc for an autonomous electric car. As per Reuters, the two companies can sign the deal by March 2021. The report from Reuters comes after Hyundai Motors said last Friday that it is in early talks with Apple Inc (NASDAQ: AAPL).

However, in Friday’s briefing, Hyundai Motor said that it has received requests for potential cooperation from different companies. This interesting development comes within a month of the fresh reports about Apple Car coming in 2024. The Reuters report suggests that once the deal is in place, the “beta version” of the car can arrive by 2022. Besides, the two companies will start mass production in 2024.

Earlier, local news publication Korea IT News revealed details about the production location and capacity but removed them later. The publication said that the two companies planned to build cars at Hyundai-subsidiary Kia Motors factory in Georgia. The report also suggested the possibility of joint investment in a factory that produces 100,000 vehicles by 2024. The full annual capacity of the proposed plant shall be around 400,000 vehicles.

Looking at Tesla‘s phenomenal success, it looks as if big players are willing to enter the autonomous vehicle and EV industry. The entering of giants like Apple will be a big boost for the EV space. This is because the car business is very cash intensive but giants like Apple with deep pockets hold the appetite to bring projects to reality.

Hyundai Stock Price Jumps 20%

Shares of Hyundai Motor jumped a straight 20% soon after the news broke out last Friday on the Korean Exchange. Even during today’s morning trade, shares of Hyundai Motor surged 15% in early trade. Other affiliate auto parts makers for Hyundai also rallied today.

Hyundai Mobis shares jumped 12.7% whereas Kia Motors shares jumped 9.1% earlier today. There’s still not an official statement coming from either of the companies. In a word with CNBC, a Hyundai Motors representative Cherry Kang said:

“We understand Apple is in discussion with a variety of global automakers, including Hyundai Motor. As the discussion is at its early stage, nothing has been decided.”

As per the previous reports, Apple shall be reportedly using its own battery technology of “monocell” design. This design can pack more active material in the battery allowing long mile travel. Speaking on developments around the Apple Car Project Titan, Daniel Ives and Strecker Backe from Wedbush Securities, said:

“Over the last six years we have seen many twists and turns in Apple’s automotive ambitions. Project Titan as its been known within the halls of Cupertino has ultimately been significantly scaled down from its initial ramp a few years ago and now appears to be front and center again on the radar screen of the Street.”

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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