Kia Motors stocks leap to Apple’s investment of $3.6 trillion after reports.
Key sentence:
- Apple studies considering the expansion into vehicles have led to speculation about future development partners.
- At the automaker’s facility in Georgia, US, Apple plans to build products with Kia and develop Apple automobiles.
After such a local media storey that Apple Inc. is investing 4 trillion won ($3.6 billion) as one of a deal between the South Korean carmaker to produce electric cars, Kia Motors Corporation jumped as high as 14.5 per cent.
The iPhone maker plans to set up production with Kia:
Without specifying anyone, the iPhone manufacturer plans to set up production with Kia as well as build Apple cars at the auto manufacturer facility in Georgia, U.S., DongA Ilbo said.
As per the newspaper, which said that they had an initial goal of producing 100,000 cars a year, the companies will sign an agreement on Feb. 17 and plan to launch Apple vehicles in 2024.
A representative in Seoul for the car manufacturer as well as a representative in California for Apple refused to comment.
The company isn’t in a rush with partnership decisions:
Apple studies considering the expansion into vehicles have led to speculation about future development partners.
The car-development work of the technology firm was still at an initial point, as well as the business will take at least half a century to launch an autonomous EV, Bloomberg News has told sources with knowledge of the efforts. That means the company is not in a rush to make decisions about partnerships.
Hyundai Stock pushed up around 20% last month:
Hyundai Motor Co., an affiliate of Kia, backed off a claim last month which said it was in negotiations with Apple, revamping it to say only that possible partners for the production of autonomous EVs had approached it.
The news moved Hyundai’s stock up around 20 per cent on the day. After 1997, Kia shares are now at their peak.
Apple car would rival vehicles from Tesla Inc:
An electronic Apple car will compete with Tesla Inc. vehicles and also companies such as upstart Lucid Motors as well as China’s Nio Inc., and also existing manufacturers including such Daimler AG and Volkswagen AG. It can cost billions of dollars to set up car production and take years, perhaps the reason why Apple talks to prospective partners.
Foxconn Technology Group stated:
Partnerships have also been pursued by other technology firms looking to grow into automobiles. Foxconn Technology Company, a Taiwanese iPhone assembler, said that last month that it was setting up a partnership with Chinese car manufacturer Zhejiang Geely Holding Group Co. to provide global automotive companies with manufacturing as well as consulting services.
