If you were excited about the recent resurrection of Apple Car news, it’s time to temper your expectations. South Korean automakers Hyundai (and their subsidiary Kia Motors) have said that they are no longer in talks with Apple to develop an autonomous vehicle.
Hyundai shares fell 6.21% in South Korea on Monday. Kia shares also plunged 15% on the news. Other affiliates, including Hyundai Wia, Hyundai Mobis and Hyundai Glovis also fell sharply.
Hyundai initially said last month that it was in early-stage talks with Apple. However, they later revised the statement and made no mention of the iPhone maker. It led to a surge in shares of Hyundai and its affiliates, including Kia Motors, at that time.
More recently, there were multiple reports that Apple was close to finalizing a deal with Hyundai-Kia. It was said to firm up an agreement to manufacture an Apple-branded autonomous EV at the Kia assembly plant in West Point, Georgia. The vehicle would use Hyundai’s E-GMP platform.
Retail investors quickly bought Hyundai and Kia shares worth roughly $817 million and about $713 million, respectively. As the talks between Apple and Hyundai seem to have broken down, the share values have dropped again. Some have speculated that Apple, a notoriously tight-lipped company, did not appreciate that Hyundai execs seem to have leaked the potential news. If Apple is still looking an established automotive partner, they may be turning to other companies now.
Speculation about Apple getting into the auto business has been rife for several years now, but nothing concrete has ever materialized. Some Wall Street analysts see the auto sector as a new market for Apple to grow into. However, others caution against the reality of making an Apple-branded car. It could potentially mean heavy investments for low margins.
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