Hyundai stock price explodes after confirming talks with Apple
- The South Korean automaker has confirmed it is in talks with Apple over an electric car and battery deal
- Two firms are discussing the production of self-driving cars and batteries by 2027 in the US-based factories
- Hyundai stock price initially gained about 25% on the Apple news before pulling back to close +19.42%
Shares of Hyundai (KRX: 005380) soared 25% on the news that the South Korean automaker was in early discussions with Apple over an electric car and battery deal.
Fundamental analysis: Talks confirmed
The news comes a few weeks after reports about Apple’s plan to expand into self-driving car technology and production of a car that could run on its own battery technology in 2024.
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According to Reuters, Apple and Hyundai held talks about collaborating on the production of self-driving cars and batteries by 2027 in the US-based factories.
“Apple and Hyundai are in discussion, but as it is early stage, nothing has been decided,” Hyundai said.
Later, Hyundai said “getting requests for cooperation on joint development of autonomous electric vehicles from various companies”, without disclosing names of the potential collaborators.
If Apple decides to move on with its EV production plans, leading electric car producer Tesla might be getting a major rival. While it’s still unknown who would produce Apple-branded electric vehicles, analysts believe the tech behemoth will rely on a manufacturing partner.
“We continue to strongly believe Apple ultimately announces an EV strategic partnership in 2021 that lays the groundwork to enter the burgeoning EV space,” Wedbush analysts wrote in a note.
Analysts also think that Apple might be keen on collaborating with Hyundai as its electric car platform would help cut costs when it comes to producing vehicles.
Hyundai and Apple already have an on-going collaboration on Apple’s software for connecting iPhones to different vehicles, CarPlay.
Technical analysis: Shares explode
Hyundai stock price initially gained about 25% on the Apple news before going up a small portion of these gains to close 19.42% higher on the day. This way, shares printed a 7-year high above 250,000.
The buyers are now very likely to aim for the all-time high set at 272.500. Any pullback is likely to end around the 200,000 mark.
On the other hand, Apple share price trades 0.15% lower on the day.
Shares of Hyundai surged 25% on the news that the automaker is in early talks with Apple over manufacturing electric vehicles together.