The day Elon Musk has been dreading may come a lot sooner than anticipated: Apple Inc has agreed to collaborate with Kia Motors Corp to produce electric vehicles sometime in 2024, which are expected to be a direct competitor to Tesla.
According to DongA Ilbo newspaper, and later cited by Bloomberg, Apple will invest $3.6 billion in Kia Motors to set up production of Apple cars at the automaker’s plant in Georgia, US. The deal is expected to be signed on February 17, with the first Apple cars being introduced three years later. The newspaper notes that Apple will initially target a production level of 100,000 vehicles annually.
Recent announcements regarding Apple’s entrance into the EV market has created a significant amount of speculation regarding potential manufacturing partners the iPhone maker could turn to. Building a production plant can come with a multi-billion dollar price tag, and significantly extend the duration before cars hit the market, which is likely the reason why Apple has looked to Kia for a partnership.
Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
