Apple (NASDAQ: AAPL) is a company that has built itself on the refinement of innovative technologies. It wasn’t the first company to sell an mp3 player, but it ended up dominating the market with iPod devices that offered superior user experiences. Likewise, the iPhone was late to the smartphone market, but it refined and introduced features that are considered industry standards today.
The company is now reportedly preparing to enter another established market, hoping to capitalize on its powerful brand and unique design philosophies. The company is in the early stages of developing a fully-autonomous electric vehicle, which could be produced with the help of Korean automaker Hyundai.
Apple Autonomous Car Would Be Built in the United States
According to recent reports from CNBC and other major news outlets, is in final talks with Hyundai to produce an electric vehicle at the Kia auto plant in Georgia. Known only as the “Apple Car” so far, the vehicle would go into production by 2024, giving Apple plenty of time to invest in research and development.
Apple has vast experience in the technology industry but limited experience in the automotive sector. The company would essentially need to play catchup to established electric vehicle makers like Tesla, as well as traditional automakers like Ford and GM that are now transitioning to electric model lineups. By partnering with Hyundai, the company will eliminate much of the cost and learning that would usually be needed to bring a new car to market.
While no agreement for the Apple Car has been signed, Apple has invested heavily into Hyundai as a show of good faith. The Korean company has reportedly received more than $3.6 billion from Apple to collaboratively develop electric vehicles.
Partnering with Hyundai would be a huge plus for Apple. Hyundai is part of a larger group of family-linked businesses with interests in everything from real estate and civil engineering to shipping and steel production. Large Korean conglomerates, known as Chaebol, are highly efficient and powerful because they can leverage several industries to produce competitive end-products.
Will News of the Apple Car Boost the Stock?
Apple’s stock is the most valuable on the market, and the company has just reported a record quarter with more than $100 billion in revenue for the first time. This news could generate new interest in Apple stock, especially from alternative investors who are focused on clean energy and future technologies.
While news of the Apple Car isn’t likely to have a major impact on Apple’s share price today, it’s an important development that could create strong headwinds for the company in the coming years.
You may be interested
Job Hiring is Picking Up as Employers and Consumers Gain ConfidenceLamont J - March 29, 2021
The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news…
Fed Could Maintain 0% Interest Rate Until 2024Adam R - March 26, 2021
The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…