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Apple has been keeping its electric vehicle ambitions a secret.
Agence France-Presse / Getty Images
Apple’s search for a car manufacturer to join the tech giant’s project to build autonomous vehicles continues, after reports that the discussions were dissolved with
Nissan.
The shares of the Japanese auto giant fell nearly 3% in Tokyo trading.
Apple
The shares were not traded in the United States on Monday due to the President’s Day holiday.
The story behind it. There has been speculation about Apple’s vehicle ambitions since 2015, when The Wall Street Journal said it was preparing to take on Tesla. The iPhone maker has been highly secretive about its plans for the “Project Titan”, confirmed in 2016, which has evolved to include autonomous or autonomous electric vehicles.
Analysts suspect the Silicon Valley giant will partner with an existing automaker to enter the capital-intensive vehicle industry.
On February 8, Korean automakers
Hyundai
and
Kia
they said they were no longer in talks with Apple over an autonomous electric vehicle project, following widespread press and speculation by analysts that a deal was close. This news caused Hyundai’s shares to fall by more than 6% and Kia’s by 15% – eliminating the two companies’ $ 8.5 billion market value.
The next day, Nissan’s chief executive, Makoto Uchida, was pressured into an earring call to see if the company had been approached by Apple about a collaboration. Uchida avoided speaking directly to Apple, but indicated that Nissan could partner with technology companies to build the next generation of cars.
Read too:An Apple car can disrupt the auto industry as much as the iPhone’s advanced technology. Here’s what you should know.
What’s new. Nissan confirmed on Monday that it was not in talks with Apple, but said it was open to exploring collaborations and partnerships to accelerate the vehicle industry.
The Financial Times had previously reported that there were discussions between the two groups about a partnership, but that negotiations stopped over a possible brand. According to the report, the discussions did not reach senior management.
A source close to Nissan told Agence France-Presse that “when you make a product under the Apple brand, you give your soul – and your profit margins – to Apple,” and that Nissan “was not interested in giving Apple the best that we offer. “
Most:Apple iCar is a terrible idea. Here’s why.
Looking forward. It makes sense for Apple to partner with a strong automaker to fulfill its electric vehicle dreams. With Nissan streaked, following Hyundai and Kia, that list is narrowing.
On February 7, just before Hyundai and Kia confirmed they were not involved with Apple, veteran technology analyst Daniel Ives of investment firm Wedbush said it was a matter of “when not to” Apple would enter the race electric vehicles. Ives estimates the chances that the tech giant will announce a relevant partnership or collaboration in the next three to six months at 85%.
Ives pointed to Hyundai as the most likely choice, with
Volkswagen Group
—Which also makes Audi and
Porsche
—As the next best bet. With Hyundai out, investors should keep an eye on the German giant. The analyst also suggested Tesla and
Ford
as possible candidates.
Barron’s contacted Apple and Nissan for comment.