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Apple and Hyundai no longer going on (e)drives togetherINTL

Apple and Hyundai no longer going on (e)drives together

Hyundai and Kia are not in talks with Apple (AAPL) anymore about making self-driving electric cars, and we really want to know the tea.

Reports in the last few weeks pointed to the South Korean automakers and the tech giant striking some type of deal in the near future.

Hyundai, which is South Korea’s second-largest conglomerate, is known for being extremely selective when working with outsiders, and there had reportedly been internal tensions about becoming a car manufacturer for another company.

Investors are clearly disappointed in the breakup news. Hyundai Motor Group’s (005380) shares fell over 6%, and Kia Motors (000270), which is part of the Hyundai group, slumped nearly 15%, erasing a whopping $5.4b off its market value.

Now that this relationship is over, both Apple and Hyundai are off to find new partners. The iPhone maker may be eyeing deals with Honda, Jaguar Land Rover, and Volvo.

why it matters
This might be a bigger loss for Apple than it is for the automakers - for now only. The race to the e-vehicle market is a tight one. Hyundai group already has a foot in the door with their hydrogen fuel-cell cars and a new electric car manufacturing platform. On the other hand, Apple has a long way to go until it even enters the market.