Hyundai Spending Nearly $1 Billion To Keep Self-Driving Startup 'Motional' Alive

An anonymous reader quotes a report from TechCrunch: Hyundai has agreed to spend nearly $1 billion on Motional, an investment that will give the automaker a majority stake while providing the self-driving startup with the necessary capital to keep operating. The Korean automaker invested $475 million directly into Motional as part of a broader deal that includes buying out joint venture partner Aptiv. As part of the deal, Hyundai will spend another $448 million to buy 11% of Aptiv's common equity interest in Motional, according to information revealed Thursday in Aptiv's first-quarter earnings report.

Aptiv also shared that it expects to reduce its common equity interest in Motional from 50% as of March 31 to about 15%, leaving Hyundai with the remaining 85% control. Aptiv Chairman and CEO Kevin Clark flagged in January that the company would reduce its ownership interest in Motional. The company said at the time that it would stop allocating capital towards Motional due to the high cost of commercializing a robotaxi business and the long road ahead to profits. Aptiv on Thursday reduced its full-year net sales forecast for 2024 to be between $20.85 billion and $21.45 billion, down from between $21.3 billion to $21.9 billion. Motional confirmed the new funding round and increased stake from Hyundai, but didn't confirm Aptiv's numbers. Hyundai, however, said the amounts listed in Aptiv's earnings report were accurate. 'Motional started as Boston-based autonomous vehicle startup nuTonomy in 2013, before being acquired by Delphi for $450 million,' reports TechCrunch. 'Delphi would later split it's business with the Aptiv unit absorbing nuTonomy. The entity became Motional under a $4 billion Hyundai-Aptiv joint venture in 2019.'

'While it's clear from Aptiv's earnings report that the company is trying to manage risks and optimize finances amid a less positive outlook, the company's retreat, and Hyundai's step forward, raises questions about Motional's future.'

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