Hyundai Lost 8.5 Billion Market Value After Denial Of Cooperation With Apple

Hyundai Lost 8.5 Billion Market Value After Denial Of Cooperation With Apple

February 8, 2021 0 By autotimesnews

Auto maker Hyundai has denied any partnership with tech company Apple to produce self-driving electric vehicles, after the announcement the company lost a total of $ 8.5 billion in market value.

“We are receiving requests for cooperation in the joint development of unmanned electric vehicles from various companies, but negotiations are at an early stage and nothing has been decided yet,” the automakers said on Monday.

At the same time, the company added: “We are not in talks with Apple to develop autonomous cars.”

Following the announcement, Hyundai shares fell 6.2% and the company lost $ 3 billion in market value. The company’s subsidiary, Kia Corp, lost $ 5.5 billion in capitalization with shares falling 15%.

The media reported that despite the growth of shares of Kia and Hyundai after reports of the beginning of negotiations with Apple, there was opposition to such cooperation within the company.

“We are not a company that makes cars for others,” a company spokesman said in a comment to the publication, speaking on condition of anonymity.

Analysts say the talks could have fallen apart due to media leaks on the partnership. Another possible reason is due to conditions on the part of Apple, where Hyundai’s role in the partnership is focused on manufacturing equipment rather than being defined by a strategic partner.

Kia Motors Corp., part of the Hyundai Motor Group, surged 14.5% on the back of local media reports, and Apple is investing $ 3.6 billion in the automaker as part of an electric vehicle partnership.

Founder of Tesla Inc. Musk said that in the most difficult times for the company he wanted to transfer the company into the hands of Apple Inc, but Apple CEO Tim Cook rejected the offer.

Tech company Apple plans to start producing cars with its own battery technology by 2024.

Hyundai Motor Co said that it is currently in the early stage of negotiations with Apple – it talks about possible plans of the tech giant to start a joint production of electric cars.