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Summary
- As per media reports, Apple may reportedly sign a deal with Kia Motors for its future EV plans.
- There is no official confirmation from any of the parties involved.
- Kia's shares surged high with the release of the partnership report.
There has always been speculation around Apple Inc (NASDAQ:AAPL) entering the growing EV market, though the iPhone maker never officially commented on it. Media is abuzz with reports of an imminent Apple-Kia Motors deal worth 3.6 billion. The companies may reportedly ink a deal on 17 February 2021.
Image source: © Fotofreaks | Megapixl.com
Kia's shares jumped immediately after the news surfaced. On 3 February 2021, Kia surged over 14%, its highest since 1997.
Do check out: News of Apple Car surges KIA stock to all time highs.
If reports are to go by, Apple Inc is planning to set up production with Hyundai subsidiary Kia to build EV cars at Kia's plant in Georgia, U.S.
The buzz around Apple's partner for EVs
There are several ongoing speculations around the potential EV manufacturing partner for Apple. Few reports suggest that Apple is not in any hurry to choose a partner as the company is in the early stages of starting the project.
While others anticipate Hyundai as its future partner due to Hyundai's EV platform - E-GMP and its plant in the US. Apple's electric vehicle manufacturing may start somewhere by 2024. The initial target is to manufacture 100,000 vehicles annually, which could go up to 400,000 units per year later on. The alliance is expected to combine Kia's production and manufacturing capabilities, with Apple's battery technologies, semiconductors, and form factor. Apple will manage the autonomous driving user experience and provide innovative high-tech hardware and software for the EV cars.
Hyundai had earlier said in a statement that it was in talks with Apple as a potential EV partner.
Lucrative EVs market outlook
Image source: © Gintsivuskans | Megapixl.com
Electronic vehicles are seen as the future of vehicles worldwide. A lot is happening in this space with rapidly advancing battery technologies and governments pushing its growth worldwide due to persistent environment issues.
Even the US political scenario is extremely favourable for EVs to flourish. President Biden has pledged to transition the country away from the oil industry. Amid this incredibly supportive business environment, the pandemic period been fortunate for EVs maker Tesla and its boss Elon Musk.
Must read: Tesla Boss Elon Musk Dethrones Jeff Bezos To Become World's Richest Person
Apple’s Rivals in EV Space: Apple's future EVs will be designed to compete with the market leaders like Tesla Inc., Daimler AG, Volkswagen AG, and also with Lucid Motors and China's Nio Inc.
