Apple’s stock price got some extra juice on Thursday after reports that it is almost a deal to produce an autonomous electric car.
Shares of the iPhone maker surged a whopping 1.9 percent to $ 136.48 after South Korean and US news outlets reported details of Apple’s potential partnership with Kia.
According to the Korean news website dongA.com, Apple is set to invest 4 trillion Korean won (about $ 3.6 billion) in Hyundai-owned Kia, which the companies plan to tentatively sign on Feb.
Kia could begin production of the “Apple Car” at its West Point, Georgia plant as early as 2024, although the timeline could be delayed, CNBC reported Wednesday.
There’s a chance Apple could partner with another company, but the tech likes Hyundai-Kia because it wants to work with an established carmaker while retaining control of the vehicle’s technology, sources told CNBC.
“The first Apple Cars will not be designed to have a driver,” a source aware of the plan told the outlet. “These will be autonomous, electric vehicles designed for driverless driving and focused on the last mile.”
The reports added more grist to Apple’s rumor mill that has been churning for years. Hyundai helped with the speculation last month by issuing a cryptic statement saying it had unspecified discussions with Apple.
The deal between Hyundai and Kia could put Apple on track to forge similar partnerships with other automakers and even build its own electric vehicles one day, Wedbush Securities analyst Daniel Ives said.
“The company has been working around this autonomous vision for years in Cupertino and we believe that a potentially greater strategic partnership with an established car player such as Hyundai, Tesla, Ford or VW would be a golden partnership for the next decade to leverage this EV. opportunity, ”Ives wrote in a research note.
Apple did not immediately respond to a request for comment on Thursday. Its shares were up about 1.7 percent to $ 136.19 as of 1:52 PM
With pole wires