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Although nothing was finalized, several media reported on Friday that Hyundai had confirmed it was speaking to Apple. The news was originally reported by Korea Economic Daily TV, although Reuters, Bloomberg and others have since reported that Hyundai says it is in some sort of discussion with Apple (AAPL) about a car crash.
CNN Business was unable to confirm the nature of the discussions. Hyundai said in a statement only that “we are receiving proposals for cooperation from various companies, but no decision has yet been taken.”
Apple declined to comment.
The automaker’s shares, however, are rising as investors consider the possibility that Hyundai (HYMTF) could be a partner on Apple’s car project. According to data provider Refinitiv, the stock rose more than 20% in Seoul, giving it its best day in at least 20 years.
The two companies have reasons to consider a partnership. Discussions of Apple’s interest in electric and self-driving cars have been going on for years, though they’ve been heating up recently. A Reuters report last month, citing anonymous sources, said Apple plans to produce a passenger vehicle by 2024. A Bloomberg report this week, also citing anonymous sources, said Apple had started early development work on an electric vehicle, but any resulting product would be at least five years away.
Hyundai, meanwhile, has pledged to join the race to build such vehicles. The company said last October that it plans to invest 41 trillion won ($ 37 billion) in “mobility technologies of the future” by 2025 – a commitment that puts it on par with major players like Volkswagen.
In December, Hyundai unveiled the engineering of a series of new electric cars. Called E-GMP, this basic vehicle structure will offer more than 300 miles of range, according to Hyundai, and can be charged to 80% of its full power in 18 minutes. It can be used as the basis of sedans and SUVs, the company said.
“We believe Apple is in the early stages of talks and is exploring a handful of strategic partnerships and global collaborations with existing automakers on the [electric vehicle] before, with Hyundai on the radar, ”wrote Wedbush analyst Dan Ives in a research note released shortly after reports of the Hyundai talks first erupted.
He added that self-driving cars are probably pretty far away for Apple given safety and regulatory concerns. But he said electric cars are “what could ultimately be a trillion dollar opportunity around the world over the next decade.”
“It is a smart strategic decision for Apple to dive into the depths of the pool on this new era of [electric] vehicles, ”Ives said.
– Peter Valdes-Dapena and Yoonjung Seo contributed reporting.
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