Apple to invest in Kia
The shares of Kia Motors have skyrocketed after reports stating that Apple intends to invest $3.6 Billion in Kia Motors. Kia Motors Corp. jumped as much as 14.5%.
As per reports, the company plans to build electric cars at Kia’s (Georgia, US facility). The deal is expected to take place on Feb 17 with Apple cars coming to the market by 2024. According to a newspaper report, The company plans to have an initial target to produce 100,000 units in a year. However, representatives from both the tech giants declined to comment on the merger.
Industry experts suggest that the company is still in its inception stage. It will take at least half a decade for the tech giant to become autonomous as an EV manufacturer. Meanwhile, the company will have to collaborate with established car manufacturers to build a secure EV ecosystem.
Recently, Hyundai a sister brand of Kia Motor Co. brushed aside talks of it collaborating with Apple to develop EVs. While there were talks of a Hyundai-Apple merger, Hyundai witnessed a surge in stock by almost 20%. Kia shares are at their highest since 1997.
EV prospects
Apple will be competing with EVs from Tesla, Lucid Motors, and China’s Nio Inc. It will also compete with other established manufacturers like – Daimler AG and Volkswagen AG. Setting up a plant will cost billions and take several years, which pushed Apple to look out for potential partners.
Similarly, some other tech companies are also expanding into cars and have sought partnerships. Taiwanese iPhone assembler Foxconn Technology Group will venture with Chinese carmaker Zhejiang Geely Holding Group Co. This will provide production and consulting services to global automotive enterprises.
