Apple Held Talks With Canoo Over Electric Vehicle Foray: The Verge

Apple Inc AAPL and California-based electric startup Canoo Inc GOEV held talks in the first half of 2020 centered around the latter’s speculated automotive entry, the Verge reported Tuesday.

What Happened: The companies are said to have discussed options spanning from acquisition to investment, two people familiar with the matter told the Verge.

The automotive startup was more interested in securing an investment from Apple, as per the Verge’s sources. The talks have since then fallen through.

Canoo shares surged over 25% in after-hours trading.

Why It Matters: Canoo’s EV platform dubbed “skateboard” evoked the interest of the Cupertino, California-based tech giant as it integrates more of the car’s electronics and allows for greater flexibility in cabin design, the Verge noted.

The platform reportedly also has steer-by-wire technology, which has not been adopted en masse by the industry. 

Canoo merged with the blank-check company Hennessy Capital Acquisition Corp. IV last month to go public. 

See Also: Canoo Unveils Multi-Purpose Electric Delivery Vehicle Ahead Of SPAC Merger Plan

Apple and Korea’s Hyundai Motor Company HYMTF could sign a deal to produce EVs as early as March, as per unconfirmed reports. 

Price Action: Apple shares closed 0.14% lower at $128.80 on Tuesday and gained 0.33% in the after-hours session. On the same day, Canoo shares closed nearly 1.9% lower at $16.72 and gained 25.30% in the after-hours session.

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