Hyundai, Kia stock sheds $8.5 billion in days after Apple admission
Well, Kia executives can’t blame Robinhood for this one.
In three tumultuous days, Kia Automotive has gone from a 21st-century technological visionary to a plummeting meteor on the stock market. At last week’s end, Kia was reportedly plowing ahead with Apple on designing the next generation of autonomous vehicles. But regulatory filings showed that neither of the partner companies Hyundai and Kia had entered into any sort of serious discussion with Apple on the matter.
Apparently most, if not all, of the Kia/Apple story was merely rumor dreamt up by various international media after Hyundai executives let slip that preliminary meetings on the topic of AVs had been held between the two companies. Sinc that time, it appears the Kia/Hyundai group saw fit to let the speculators run with a heavily optimistic future for the vehicle manufacturers to drive stock prices upward: Kia stock went up 61% over the five weeks.
Probably not coincidentally, Kia Corporation president/CEO Ho Sung Song announced broad acceleration of the company own “Plan S” upgrade and its electric vehicle production/sales targets.
Song stated Kia’s plan to accentuate “eco-friendly vehicles,” with a sales targets of 40% of all Kia vehicle sales. By 2030, Plan S calls for the sale of some 880,000 all-electric vehicles, or 22% of Kia’s annual production.
The aforementioned Kia EVs will be represented by some 11 new models rolling out by 2026.
Such a glowing picture of the nearish future hardly swayed investors in the present, however: A Reuters report of today (Wednesday, February 10) reported that “Wiping $3 billion off its market value, Hyundai’s stock slid 6.2%. Shares in its affiliate Kia Corp, which had been tipped in [Korean] media reports as the likely operational partner for Apple, tumbled 15% — a $5.5 billion hit.”
Already long week for Hyundai and Kia, then – with two more days remaining…