Apple Inc. (NASDAQ: AAPL) has located battery suppliers in China for its future car. In return, the company required possible partners to have production facilities in the United States. The I.T. giant is in discussions with Chinese companies BYD and CATL to supply batteries for its electric cars. Apple is in the early stages of creating the vehicle and anticipates its release in 2024.
Additionally, Contemporary Amperex Technology (CATL), a leading producer of lithium-ion batteries and Tesla’s supplier of its products, refuses to build a U.S. manufacturing facility. U.S. product prices and political tensions between Washington and Beijing are likely to be factored in this decision. BYD is a Chinese manufacturer of hybrids and electric vehicles.
Apple Inc. (NASDAQ: AAPL) favours using lithium iron phosphate batteries for its products. The use of iron instead of nickel and cobalt will allow them to produce their products at substantially lower costs. There is still a question about whether Apple will develop the battery or whether Chinese companies will develop it. Apple, BYD, and CATL declined to comment on the collaboration.
Reports from the company’s press office in December revealed that Apple is exploring unmanned technology and aims to launch passenger cars by 2024. “We will create revolutionary battery technology to produce a smaller motor and permit greater range on a single charge,” the company said.
Media reports from early January speculated about Apple and Korean Hyundai cooperating for electric vehicles. In the past, it was planned that Kia Motors, a subsidiary of Hyundai, would become Apple’s partner. Later on, there were reports that Hyundai was concerned about its brand being devalued against the backdrop of Apple and being perceived just as a partner of Apple. Kia Motors rejected discussions with Apple to create an electric car joint venture in early February. Bloomberg named Foxconn, Magna, Nissan, Stellantis, and Hyundai, among partners with whom Apple could build its car.
At last check, Apple Inc. (NASDAQ: AAPL) was up 0.01% to $125.90. On the previous trading day, Apple Inc. shares closed at $125.89. A total of 71.06 million shares were traded, lower than the average volume over the last three months of 92.79 million. It traded between $124.8321 and $126.32 throughout the day. The earnings per share ratio for AAPL was $4.46. The stock has gained 1.04% in the past five sessions and has dropped -2.96% over the past month. The stock has lost -5.12% year to date. Over the past 50 days, the price has averaged $128.26, exceeding the 200-day moving average of $124.36. Moreover, the stock is currently trading at an RSI of 47.90.