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

A symbol of Hyundai Motor is considered on a tumbler door at a company branch in Seoul on July 23, 2015

Jung Yeon-Je | AFP | Getty Photos

South Korean automakers Hyundai Motor and Kia Motors acknowledged Monday they’re not in talks with Apple to manufacture an self sustaining vehicle.

Hyundai Motor shares fell 6.41% in South Korea on Monday morning whereas Kia Motors shares dropped 13.2%. Other affiliates in conjunction with Hyundai Wia, Hyundai Mobis and Hyundai Glovis were also down sharply.

“Hyundai Motor is getting requests from multiple corporations for cooperation in joint building of self sustaining, electric vehicles nonetheless nothing has been determined since it be in early stage,” the company acknowledged, in step with a CNBC translation of a regulatory filing.

“Hyundai Motor just isn’t in talks with Apple on self sustaining vehicle building,” it added.

Its affiliate Kia Motors, which is the 2nd-biggest vehicle producer in South Korea within the back of Hyundai, made a a similar filing. The company acknowledged it used to be reviewing possibilities of cooperating with “multiple corporations in a international country” over self sustaining electric vehicles — nonetheless nothing has been determined.

Kia Motors also acknowledged it used to be not in talks with Apple.

Hyundai in the initiating assign acknowledged final month it used to be in early-stage talks with Apple, nonetheless later revised the assertion and made no mention of the iPhone maker. It ended in a surge in shares of Hyundai and its affiliates, in conjunction with Kia Motors, at that time.

This month, CNBC reported that Apple used to be finish to finalizing a deal with Hyundai-Kia to produce an Apple-branded self sustaining electric vehicle on the Kia meeting plant in West Point, Georgia. Sources advised CNBC’s Phil LeBeau that no agreement had but been reached and that Apple can also within the extinguish make a selection to accomplice with but some other automaker individually, or as effectively as to working with Hyundai.

Shares can also fall further

Retail investors own sold Hyundai Motor and Kia shares fee roughly 915.7 billion Korean gained ($817 million) and 798.8 billion gained (about $713 million), respectively, on narrative of the Jan. 8 speculation over a capacity collaboration with Apple, in step with Sung Yop Chung, regional head of vehicles and parts at Daiwa Capital Markets.

“Following the negative vibe from every (Hyundai Motor) and Kia’s filing this morning, highlighting that there is at this time no EV cooperation with Apple, worst-case means that Kia’s shares would perchance well correct as grand as 31%,” he advised CNBC’s Chery Kang.  

Speculation about Apple entering the auto commercial has been rife for quite a lot of years nonetheless nothing concrete has materialized.

Some Wall Avenue analysts leer the auto sector as a new market for Apple to develop into, nonetheless others warning in opposition to the truth of making an Apple-branded vehicle because it would perchance well potentially indicate heavy investments for low margins.

— CNBC’s Chery Kang contributed to this picture.