Just a month after it was reported potential collaboration with Apple in the production of electric cars, South Korean vehicle manufacturers Hyundai Motor and Kia Motor announced they were no longer in discussions of the venture.
Subsequently, Hyundai shares declined 6.2%, seeing a loss of $ 3 billion while Kia shares declined by 15%, bringing a loss of around $ 5.5 billion.
In a notification, Hyundai Motor has received many requests from several firms to collaborate in the manufacture of electric cars. However, until now there is still no final word as it is new in the initial phase.
Last month, Hyundai announced that they were in the initial phase of discussions with Apple on the production of electric cars, which led to a surge in shares for the two firms on the same day.
And this month, CNBC reported that Apple is close to concluding an agreement with Hyundai-Kia to produce electric cars with the chosen installation location in West Point, Georgia.
The opposite happened when the two parties apparently failed to reach an agreement and Apple was said to want to work with other vehicle manufacturers besides Hyundai.
According to Daiwa Capital Markets branch head Sung Yop Chung, there could be a conflict between them where Hyundai-Kia doesn’t want to just be Apple’s subcontroller, where they expect to also profit from Apple’s strength in software.
Clearly, the worst -case situation for Kia shares is likely to be corrected by up to 31%.
