Apple is Nearing a Deal to Build an Electric Car with This Automaker

According to a CNBC report, tech giant Apple and Hyundai may be joining forces and are nearing a deal to build an electric car together.

According to the report, the Apple-branded car would be built at Kia’s plant in West Point, Georgia but sources reveal that the deal is not done and Apple may choose to go with another vehicle maker.

CNBC’s Phil LeBeau and Meghan Reeder reported the news this week and cited multiple sources familiar with the project.

Sources told CNBC that the deal wasn’t done yet and that Apple may decide to partner with another automaker, either instead of or in addition to Hyundai.
Apple is looking to build the car in North America and partner with a carmaker that will let it take the reins when it comes to software and hardware, sources said.

According to one source that spoke to CNBC, Apple’s cars wouldn’t be built to have a driver and that they’d be geared toward “the last mile.” This means that the cars could be commercial.

The sources also said that Apple is eyeing 2024 for production but it could be postponed.
In December, Reuters reported Apple planned to launch a self-driving EV as soon as 2024.

One source familiar with the Hyundai-Kia strategy has said that “Chung has made it clear, mobility is the future of the company.”

One source familiar with Apple’s strategy on developing a car has told CNBC, “I doubt Hyundai is the only automaker they could strike a deal with, there could be somebody else.”

Morgan Stanley analyst Katy Huberty explained the profit potential for Apple and wrote, “Smartphones are a $500bn annual TAM. Apple has about one-third of this market. The mobility market is $10 trillion. So Apple would only need a 2% share of this market to be the size of their iPhone business.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.