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.