Apple and Hyundai Motor Company are set to sign a partnership that will tie the two companies together in an attempt to develop an autonomous all-electric car, a new report says.
Korea IT News reported on Sunday that tech giant Apple will pair with Hyundai and will begin production on the car in 2024 in the United States. The news sent Hyundai shares up 20%.
The report came after a Friday statement from the Japanese automaker that revealed it was in talks with Apple to develop a partnership that would lead to the manufacturing of an all-electric car that will be fully autonomous. Apple has long been rumored to be interested in joining the automotive market as it is the world’s most popular tech brand, but it may have needed some guidance from an already-established car company.
Hyundai didn’t comment on the report, according to Reuters, but did state that it has been in contact with several companies on the possibility of developing electric cars for the future.
The report from Korea IT has been revised several times since its initial publishing on Sunday. Details that include the production location and capacity, along with a timeframe for signing the agreement and launching a “beta” version of the car, were all removed. Additionally, the report stated that Apple and Hyundai planned to build the vehicle at a Georgia manufacturing facility that builds Kia’s cars. Kia is an affiliate of Hyundai, but it was also in the cards that a new facility could be built, which would manufacture 100,000 units annually until reaching a peak production volume of 400,000 cars.
Teslarati reported several times on Apple’s desire to build an all-electric car that was capable of self-driving. In December, we reported that TSMC, which supplies Apple with semiconductors, was in the market to assist apple. Last week, we also reported that Hyundai confirmed that Apple was going to build an EV, but its release date was slated for 2027.
Nevertheless, the developments are early, and the date is far from solidified. All too often, automakers set lofty expectations for themselves that result in the failure to produce an all-electric car. This leads to EV enthusiasts losing faith in a particular company, which has only surged Tesla’s reputation as the EV leader because it has been able to stick to timeframes.
Tesla plans to reach Level 5 Autonomy next year, Elon Musk says, and it will also have a $25,000 car released within the next few years. Whether Apple and Hyundai can compete with Tesla is unclear. Still, more competition in the market, especially from a tech giant like Apple, could lead to a more robust market that allows for more advancements to be made in the sector.