Apple, Hyundai Could Forge EV Manufacturing Deal By March, Report Claims

Apple Inc AAPL and Hyundai Motor Company HYMTF could forge a partnership to make electric vehicles in the United States starting around 2024, according to unconfirmed reports.

What Happened: The deal between the two companies could be signed as early as March, Reuters reported Sunday — citing South Korea’s IT News.

The local newspaper updated its original report and removed details related to production location and capacity, as well as the timeline of the signing of the deal and launch of the first vehicles, as per Reuters.

Previously, the Korean publication had claimed that the two companies would build the vehicles at the Kia Motors factory in Georgia and jointly invest in a production facility that could roll out 100,000 vehicles around 2024. The annual capacity of the future plant was said to be 400,000 vehicles. 

The report had also pointed to the release of a beta version of the EV by 2022.

Hyundai Motors shares were trading 14.43% higher in Seoul at press time.

Why It Matters: Hyundai refused to comment on the matter and pointed Reuters to an earlier statement which stated it was talking to multiple automakers.

Wedbush analyst Daniel Ives said Friday that Apple would announce an EV strategic partnership in 2021.

The analyst said the Tim Cook-led company could be looking at a handful of strategic partnerships worldwide with existing automakers.

Morgan Stanley analyst Adam Jonas said last month that segment leader Tesla Inc’s TSLA stock faces a “formidable bear case” due to Apple’s EV plans.

Price Action: Apple shares closed nearly 0.9% higher at $132.05 on Friday and fell 0.23% in the after-hours session. On the same day, Hyundai Motors OTC shares closed 28.48% higher.

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