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Apple has been secretive about its electric vehicle ambitions.
Agence France-Presse / Getty Images
Apple’s quest for an automaker to join the tech giant’s project to build autonomous vehicles continues, after reports that discussions with
Nissan
Shares of the Japanese car giant plummeted nearly 3% in Tokyo trading.
Apple
shares were not traded in the US on Monday due to Presidents’ holiday.
The backstory. There has been speculation about Apple’s vehicle ambitions since 2015, when The Wall Street Journal reported it was gearing up to take on Tesla. The iPhone maker has been very secretive about its plans for “Project Titan,” confirmed in 2016, which has evolved into self-driving or autonomous electric vehicles.
Analysts suspect the Silicon Valley giant might partner with an existing car maker to break into the capital-intensive auto industry.
Korean car manufacturers arrived on February 8
Hyundai
and
Which
said they were no longer in talks with Apple about an autonomous electric vehicle project, following widespread speculation from press and analysts that a deal was near. That news had dropped Hyundai’s stock by more than 6% and Kia’s stock by 15%, removing a combined $ 8.5 billion market value from the two companies.
The next day, Nissan CEO Makoto Uchida was asked in an earring call whether the company had been approached by Apple for a collaboration. Uchida avoided speaking directly to Apple, but said Nissan could work with technology companies to build the next generation of cars.
Also read:An Apple car can disrupt the auto industry just as well as the iPhone Upended Tech. Here’s What You Need to Know.
What’s new. Nissan confirmed on Monday that it was not in talks with Apple, but said it was open to exploring collaborations and partnerships to accelerate the auto industry.
The Financial Times had previously reported that there were discussions between the two groups about a partnership, but talks had stalled over potential branding. According to the report, discussions did not reach senior management level.
A source close to Nissan told Agence France-Presse that “when you make a product under the Apple brand, you give your soul – and your profit margins – to Apple,” and that Nissan “was not interested in giving Apple the best that we offer. “
Plus:Apple iCar is a terrible idea. This is why.
Looking forward. It makes sense that Apple would partner with a strong automaker to realize its electric vehicle dreams. With Nissan crossed out, after Hyundai and Kia, that list gets narrower.
On Feb. 7, just before Hyundai and Kia confirmed they were not involved with Apple, veteran technology analyst Daniel Ives of investment firm Wedbush said it was a matter of ‘when not if’ Apple entered the electric vehicle race. Ives estimated the 85% chance that the tech giant would announce a relevant partnership or collaboration within the next three to six months.
Ives called Hyundai the most likely choice, with
Volkswagen group
– which also makes Audi and
Porsche
– Like the next best bet. With Hyundai out, investors should keep an eye on the German giant. The analyst also drove Tesla and
Ford
as possible candidates.
Barron’s has contacted Apple and Nissan for comment.