KIA Stock Soars Amid Apple Car Rumors

The rumors about the possibility of Apple expanding its operations to electric cars’ production are quite old. But now, after a torrent of rumors, information has arrived that seems to direct this possibility, and it will also do so from the hand of one of the manufacturers with the most potential on the market, KIA.

This is what the South Korean press indicates today, which puts on the table the important leap forward that KIA shares are experiencing, with an increase of 14.5%, after learning about its collaboration with Apple to manufacture electric cars.

This same information indicates that KIA and Apple will form an agreement valued at 3.6 billion dollars, which will be invested in the factory that the Asian brand has in Georgia, United States. It is estimated that 100,000 units a year will go-ahead for the start of production, 2024, which will increase to 500,000 units later.

A possibility that has pushed KIA shares up 20% in January, and now it seems that they will boost them again if this information is officially confirmed.

Thanks to this, KIA will achieve capital injection and an improvement in the economy of scale of its purchases in elements such as engines, batteries, and other components that shape the electrical system. They could even get to work on their battery production facilities’ start-up if the volume and investment allow it.

On the other hand, Apple manages to enter the electric car market without the nightmare of starting a production line from scratch and all the challenges that this represents, accelerating its manufacturing capacity for a few years and reducing the problems and associated costs. And they will always have the possibility to buy the factory from KIA if they want to do independent production.

The delicate issue of the distribution and maintenance network, which Apple could have solved with this agreement, would mean more sales volume and working hours for KIA workshops.

A collaboration where KIA and the Hyundai group will get more benefits, such as accessing the autonomous driving technology that Apple develops and a fleet to carry out its development.

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