Apple’s share price gained extra juice on Thursday following reports that it is close to closing a deal to produce a standalone electric car.
Shares of the iPhone maker rose 1.9 percent to $ 136.48, after South Korean and US news reported details of Apple’s potential partnership with Kia.
Apple would invest 4 billion Korean won (about $ 3.6 billion) in Hyundai-owned Kia under the deal, which companies are seeking to sign on Feb. 17, according to Korean news site dongA.com .
Kia could start producing “Apple Car” at its plant in West Point, Georgia immediately after 2024, although the schedule could be rejected, CNBC reported on Wednesday.
There is a chance that Apple will partner with another company, but the technology titan likes Hyundai-Kia because it wants to work with an established car manufacturer while maintaining control of the vehicle’s technology, sources told CNBC.
“The first Apple cars will not be designed to have a driver,” said a source with knowledge of the plan. “These will be autonomous electric vehicles designed to run without a driver and focused on the last kilometer.”
Reports have added more weight to the rumor mill about Apple cars, which has been running for years. Hyundai helped spur speculation last month by issuing a cryptic statement saying it had unspecified talks 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 in a day, according to Wedbush Securities analyst Daniel Ives.
“The company has been working for years in Cupertino around this autonomous vision, and we believe that a potentially larger strategic partnership with an established car player, such as Hyundai, Tesla, Ford or VW, would be a golden partnership for the next decade. achieve 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.
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