Hyundai Motors backed away from a declaration confirming it is in talks with Apple Inc. on developing a self-driving car that fueled an $8 billion surge in the South Korean automaker’s market value on Friday.
Hyundai’s stock surge in Seoul (capital of South Korea) was the biggest since 1988. Korea Economic Daily TV first reported the conversations with Apple and said that Hyundai completed internal discussions on the project and expected approval from the chairman. However, others have since reported that Hyundai says a discussion is ongoing with Apple about a car tie-up.
Initially, by naming Apple, Hyundai risks the technology giant’s anger known for its secretiveness regarding new products plus partnerships. As told to Bloomberg News, Apple will take no less than half a decade to launch an autonomous electric vehicle. That gives a clear view that the company is in no hurry state to decide on potential auto-industry partners.
Hyundai initially delivered a statement saying that Apple Inc. had been in contact with one of the various automakers. The Korean auto company then reviewed that statement less than a half-hour later, removing the reference to other automakers. Moreover, a few hours after that, the company passed another revision that omitted Apple in the report.
The nature of the discussions is still not confirmed by CNN Business. Hyundai claimed that it received several requests for potential cooperation from many companies. In contrast, Apple refused to pass any comment.
Surging Shares of Automaker and Investment of Hyundai Motors into Future Mobility Technology
The automaker shares are surging as investors consider Hyundai’s option to be a partner on Apple’s rumored car project. According to data provider Refinitiv, the stock ended up more than 19 percent in Seoul, the best day in at least a decade.
Apple Inc. and Hyundai Motors, both companies have reason to consider a corporation. The conversations of Apple’s interest in electric, self-driving cars have been for years, but it has recently been heating up. Last month, a Reuters report, referring to unnamed sources, said that Apple Inc is moving forward with self-driving car technology. Moreover, it is targeting 2024 to produce a passenger vehicle that could include its own battery technology. This week, a Bloomberg report, also mentioning unnamed sources, reported that Apple had begun early development work on an electric vehicle. Still, any resulting innovative product would be almost five years away.
Hyundai Motor Co. said in October 2020 that it plans to invest $37 billion into upcoming mobility technology by 2025. The company, just like a commitment, puts it on par with critical players like Volkswagen.
Hyundai would provide Apple with a partner already accelerating a push into newer technologies such as electric, flying cars, and self-driving cars. The company will spend more than $55 billion over the next five years and in 2019 set up a $4 billion driver-less joint venture with a General Motors spinoff. It plans to release its first electric vehicle in 2021.
According to Hyundai, E-GMP’s basic vehicle structure will provide for over 300 miles of driving range. It can be charged up to 80% of its full power in just 18 minutes. It can be used as the basis of SUVs and Sedans.