Hyundai plans to invest about $1 billion on self-driving startup Motional

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ATI News Team

Aptiv plans to reduce its ownership interest in Motional from 50% to approximately 15%

Source: Getty Images/gesrey

Hyundai has announced a substantial investment of nearly $1 billion in self-driving startup Motional, securing a majority stake in the company, according to a report published by TechCrunch on May 2.

This investment will provide Motional with the necessary capital to continue its operations. As part of the deal, Hyundai invested $475 million directly into Motional and will spend an additional $448 million to acquire an 11% stake in Motional's common equity interest from joint venture partner Aptiv.

Aptiv, on the other hand, plans to reduce its ownership interest in Motional from 50% to approximately 15%, leaving Hyundai with 85% control. The decision to reduce its ownership interest was made due to the high costs associated with commercializing a robo-taxi business and the long path to profitability. Aptiv also adjusted its full-year net sales forecast for 2024 to be between $20.85 billion and $21.45 billion. Motional has confirmed the new funding round and Hyundai's increased stake, while Hyundai has validated the figures provided by Aptiv in its earnings report.

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