Hyundai’s stock is skyrocketing to reports that it is in early talks with Apple to build a car

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While nothing has been finalized yet, various media outlets reported on Friday that Hyundai has confirmed it is in talks with Apple. The news was initially reported by Korea Economic Daily TV, although Reuters, Bloomberg and others have since reported that Hyundai says it is in some sort of discussion with Apple (AAPL) about securing a car.

CNN Business has not been able to confirm the nature of the discussions. Hyundai said in a statement only that “we are receiving proposals for cooperation from several companies, but no decision has yet been taken.”

Apple declined to comment.

However, shares in the car maker are rising as investors consider the possibility Hyundai (HYMTF) could be a partner in Apple’s rumored auto project. According to data provider Refinitiv, Seoul’s stock continued to rise more than 20%, putting it on track for its best day in at least 20 years.
Both companies have reason to consider a partnership. Apple’s interest in electric self-driving cars has been talked about for years, although it has been heating up quite recently. A Reuters report last month, citing unnamed sources, said Apple plans to produce a passenger car by 2024. would be at least another five years away.
Hyundai, meanwhile, has pledged top dollar to enter the race to build such vehicles. The company said last October that it plans to invest 41 trillion won ($ 37 billion) in “future mobility technology” by 2025 – a commitment that puts it on par with major players like Volkswagen.

In December, Hyundai unveiled the technology for a range of new electric cars. Called E-GMP, this base construction of the vehicle provides more than 500 miles of driving range and can be recharged to 80% of its full power in 18 minutes. It can be used as a base for sedans and SUVs, the company said.

“We believe Apple is in the early stages of talks and are looking at a handful of strategic partnerships and collaborations worldwide with existing automakers on the [electric vehicle] up front, with Hyundai on the radar, ” Wedbush analyst Dan Ives wrote in a research note published shortly after reports about the Hyundai discussions first broke.

He added that self-driving cars are likely quite a long way off for Apple, given security and regulations. But he said electric cars “could eventually be a trillion dollars worldwide in the next decade.”

“It’s a smart strategic move for Apple to plunge into this new era [electric] vehicles, ”Ives said.

– Peter Valdes-Dapena and Yoonjung Seo contributed to the reporting.

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