Hyundai/Kia say they aren't in talks for Apple Car
What's the story
South Korean automaker Hyundai Motor Co and Kia Corp told Bloomberg on Monday that they are not in talks with Apple Inc. to develop the rumored Apple Car. The news sent Hyundai and Kia shares sliding. The report comes following an earlier rumor of Apple investing $3.6 billion in Kia to manufacture the Apple Car at the Korean auto maker's facilities in Georgia, USA.
Bullish on rumors
Hyundai-Apple partnership's rumors sent the carmaker's stocks soaring earlier
Earlier this month, Apple was rumored to be planning a collaboration with Kia for technology and manufacturing related to the Apple Car. The speculation involved a fully-autonomous electric vehicle. At the time, the rumor showed promise because Hyundai Mobis had inked deals with major players in LiDAR and autonomous driving technology. Following the investment news, Hyundai and Kia's share prices had gone up.
Losing billions
Hyundai's shares slide after it backtracks Apple Car claims
Hyundai has now acknowledged that it is in talks with many brands for electric and autonomous vehicles, but Apple is not one of them. This has reportedly wiped $2.4 billion off Hyundai's market value earlier today, as stock fell 4.3 percent. Kia recorded a 12.8 percent hit, losing $4.7 billion in market value.
Tight-lipped
Apple hasn't issued any statement indicating talks with car makers
Hyundai's statement was reportedly in accordance with stock market rules mandating that investors get regular updates regarding market rumors. Speculations are rife that Apple could be looking for an automotive manufacturer for its autonomous electric car project. However, the smartphone maker has not issued any statement indicating partnership with Hyundai, Kia, or any other brand for the Apple Car.
Smoke and mirrors
Apple-Hyundai collaboration may have ended, or has it?
It is unclear if the companies have actually concluded discussions, or if it is another attempt by Hyundai to keep the project under wraps upon Apple's request. Apple is known to keep development of new products confidential. Hyundai's statement in January had fuelled speculations that the two companies may collaborate for a project. The statement was later altered to remove any mention of Apple.