Canoo shares spike on failed Apple car deal news

Apple apparently looking for an electric car partner

Shares of electric van startup Canoo were up as high as 25 percent in pre-market trading Wednesday on news it held tie-up talks with Apple last year.

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The Verge reported that the companies discussed a possible investment or outright takeover by Apple in early 2020, but that the talks dissolved as Canoo balked at the idea of an acquisition.

Instead, California-based Canoo went public in December via a merger with SPAC Hennessy Capital Acquisition Corp IV, and is currently valued at around $4 billion.

Neither company would offer comment on the report.

Apple was apparently interested in Canoo’s proprietary electric car “skateboard” platform, which incorporates the entire battery and drivetrain to make it compatible with a variety of body styles.

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Prior to the Canoo report, Hyundai’s stock got a boost from news out of South Korea that it has been in talks with Apple to manufacture an autonomous electric car for the brand. Hyundai last year also entered an agreement with Canoo to co-develop a small electric car.

Canoo is scheduled to begin production of its own vehicles in 2022.