Apple Inc AAPL and Hyundai Motor Company HYMTF are conducting early negotiations on the development of self-driving electric vehicles, Bloomberg reported Thursday.
What Happened: The South Korean automaker initially confirmed through a statement that the two companies are holding talks.
“Apple and Hyundai are in discussion, but as it is at early stage, nothing has been decided,” Hyundai said, as per Bloomberg. The automaker later backtracked from the statement, saying it had received interest from a number of automakers.
Apple is not only collaborating with Hyundai to produce EVs but also to develop electric batteries, the Korea Economic Daily reported earlier.
The launch of the Apple Car is reportedly targeted for 2027.
Hyundai Motor shares rallied 16.5% at press-time in Seoul after the report came to light.
Why It Matters: Apple and Hyundai are expected to promote battery development at either Hyundai Motor or Kia Motors’ factories in the United States, as per local Korean media.
The Tim Cook-led company is taking a similar approach to Tesla Inc TSLA in that it would be taking everything in-house and designing an EV around the self-driving concept.
See Also: Why Apple Could Emerge As Tesla's 'First True Competitor'
Price Action: Apple shares closed nearly 3.4% higher at $130.92 on Thursday and gained 0.58% in the after-hours session. On the same day, Hyundai Motor OTC shares closed 1.63% lower at $42.30.
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