Apple’s stock price got a little juicy on Thursday after it reported it was about to enter into a deal to produce a standalone electric car.
Shares of the iPhone maker rose 1.9 percent to $ 136.48 after South Korean and U.S. media reported details of Apple’s possible partnership with Kia.
Apple would invest 4 trillion Korean won (about $ 3.6 billion) in Hyundai-owned Kia, according to the deal, which the companies are trying to temporarily sign on Feb. 17, according to Korean news website dongA.com.
Kia could start producing the “Apple Car” at the West Point, Georgia factory as soon as 2024, though the schedule could be rolled back, CNBC reported Wednesday.
There is a possibility that Apple may partner with another company, but the tech technician likes Hyundai-Kia because he wants to work with a well-established carmaker while maintaining control of the vehicle’s technology, sources told CNBC.
“The first Apple Cars will not be designed to have a driver,” a source familiar with the plan told the source. “They will be autonomous electric vehicles designed to run without a driver and focused on the last mile.”
Reports added more importance to Apple’s rumored car factory that has been beating for years. Hyundai helped spur speculation last month by issuing a cryptic statement saying it was holding unspecified discussions with Apple.
The Hyundai-Kia deal could start Apple on a path to forming similar partnerships with other automakers and even building its own electric vehicles one day, according to Wedbush Securities analyst Daniel Ives.
“The company has been working in Cupertino for years around this standalone vision and we believe a possible larger strategic partnership with a well-established car player like Hyundai, Tesla, Ford or VW would be a gold partnership for the next decade. taking advantage of this EV opportunity, ”Ives wrote in a research note.
Apple did not immediately respond to a request for comment Thursday. Its shares rose about 1.7 percent to $ 136.19 as of 1:52 p.m.
With publishing cables