Apple’s stock price gained a little extra energy on Thursday after reports that it is close to reaching a deal to produce a self-driving electric car.
Shares in the iPhone maker rose 1.9 percent to $ 136.48 after South Korean and American news agencies released details of Apple’s potential partnership with Kia.
Apple would invest 4 trillion Korean won (about $ 3.6 billion) in Hyundai-owned Kia under the deal, which companies are trying to sign on February 17, according to the Korean news site dongA.com.
Kia could start producing the “Apple Car” at its West Point, Georgia, plant as early as 2024, although the schedule may be postponed, CNBC reported on Wednesday.
There is a chance that Apple will partner with another company, but the tech titan likes Hyundai-Kia because he wants to work with an established automaker while maintaining control of the vehicle’s technology, sources told CNBC.
“The first Apple Cars will not be designed to have a driver,” a source with knowledge of the plan told the agency. “They will be autonomous electric vehicles designed to operate without a driver and with a focus on the last mile.”
The reports added more soot to the Apple car rumors that have been around for years. Hyundai helped to spur speculation last month by issuing an enigmatic statement saying it was having unspecified discussions with Apple.
The Hyundai-Kia deal could put Apple on track to form similar partnerships with other automakers and even build its own electric vehicles one day, according to Wedbush Securities analyst Daniel Ives.
“The company has been working in Cupertino for years around this autonomous vision and we believe that a potentially larger strategic partnership with an established car manufacturer like Hyundai, Tesla, Ford or VW would be a golden partnership for the next decade taking advantage of this EV opportunity” , wrote Ives in a research note.
Apple did not immediately respond to a request for comment on Thursday. Its shares rose about 1.7 percent to $ 136.19 as of 1:52 pm
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