Hyundai, Kia shares tumble after automakers say they’re not in talks with Apple to develop a car

South Korean automakers Hyundai Motor and Kia Motors stated Monday they’re not in talks with Apple to develop an autonomous car.

Hyundai Motor shares fell 6.41% in South Korea on Monday morning whereas Kia Motors shares dropped 13.2%. Other associates together with Hyundai Wia, Hyundai Mobis and Hyundai Glovis had been additionally down sharply.

“Hyundai Motor is getting requests from multiple companies for cooperation in joint development of autonomous, electric vehicles but nothing has been decided since it’s in early stage,” the corporate stated, in accordance to a CNBC translation of a regulatory submitting.

“Hyundai Motor is not in talks with Apple on autonomous vehicle development,” it added.

Its affiliate Kia Motors, which is the second-largest car producer in South Korea behind Hyundai, made a related submitting. The firm stated it was reviewing prospects of cooperating with “multiple companies overseas” over autonomous electrical automobiles — however nothing has been determined.

Kia Motors additionally stated it was not in talks with Apple.

Hyundai initially stated final month it was in early-stage talks with Apple, however later revised the assertion and made no point out of the iPhone maker. It led to a surge in shares of Hyundai and its associates, together with Kia Motors, at the moment.

This month, CNBC reported that Apple was shut to finalizing a deal with Hyundai-Kia to manufacture an Apple-branded autonomous electrical car on the Kia meeting plant in West Point, Georgia. Sources advised CNBC’s Phil LeBeau that no settlement had but been reached and that Apple could in the end determine to accomplice with one other automaker individually, or in addition to working with Hyundai.

Retail traders have purchased Hyundai Motor and Kia shares price roughly 915.7 billion Korean received ($817 million) and 798.eight billion received (about $713 million), respectively, because the Jan. eight hypothesis over a potential collaboration with Apple, in accordance to Sung Yop Chung, regional head of cars and parts at Daiwa Capital Markets.

“Following the negative vibe from both (Hyundai Motor) and Kia’s filing this morning, highlighting that there is currently no EV cooperation with Apple, worst-case suggests that Kia’s shares could correct as much as 31%,” he advised CNBC’s Chery Kang.  

Speculation about Apple entering into the auto enterprise has been rife for a number of years however nothing concrete has materialized.

Some Wall Street analysts see the auto sector as a new marketplace for Apple to develop into, however others warning in opposition to the fact of creating an Apple-branded car because it might probably imply heavy investments for low margins.

— CNBC’s Chery Kang contributed to this report.