The Hyundai logo is displayed at the #WeAreMobility trade fair at the 97th edition of the Brussels Motor Show on 18 January 2019 in Brussels.
Dirk Waem | AFP via Getty Images
SINGAPORE – Shares of Hyundai Motor rose 20% after South Korean carmaker said it was in initial talks with Apple about working together to develop a self-driving car.
“We understand that Apple is in discussions with a wide variety of global automakers, including Hyundai Motor. Since the discussion is in its infancy, nothing has been decided,” a representative told CNBC’s Chery Kang by Hyundai Motor.
The statement followed a local Korea Economic Daily report that said Apple suggested the link and Hyundai Motor was reviewing the terms. The report said that both the production of electric vehicles and the development of batteries were included in the proposal and that the car could be released in 2027.
Apple declined to comment on the report.
The shares of Hyundai Motor and its subsidiaries appeared in South Korea.
Hyundai Motor rose 20.87%, Hyundai Wia added 21.47%, Hyundai Mobis gained 23.15% and Hyundai Glovis rose 3.51%. Shares of Kia Motors, a subsidiary of Hyundai, which is South Korea’s second-largest automaker, rose 9.84%.
Speculation about an Apple car has been plentiful for several years, but nothing concrete has materialized.
Citing sources familiar with the matter, Reuters reported last month that Apple was advancing with its automatic driving technology. The report said the iPhone maker aimed to produce a passenger vehicle by 2024 that could include its own advanced battery technology.
Although the report sent shares to companies that manufacture parts for autonomous cars, prominent Apple analyst Ming-Chi Kuo said the hype was limited to speculating that some of these companies could supply parts for in Apple’s car.
Kuo warned that the market was “too bullish” on Apple’s car and said he wouldn’t be surprised if the vehicle didn’t launch until 2028 or later.
– CNBC’s Chery Kang contributed to this report