<div>
 <ul>
 <li>
 
 Hyundai is investing nearly USD 1 billion in a Hyundai-Aptiv autonomous vehicle joint venture, Motional, gaining a majority stake and providing the startup with capital for continued operations. The deal involves a direct investment of USD 475 million and purchasing additional equity for USD 448 million from its partner, Aptiv (11% stake), resulting in Hyundai controlling 85% of Motional.
 
 </li>
 <li>
 
 Aptiv, which previously held a 50% stake in Motional, is reducing its investment. It cites the high costs and long timeframe associated with commercializing robotaxis.
 
 </li>
 <li>
 
 The deal is expected to be completed by Q3 2024, subject to customary regulatory approvals and closing conditions.
 
 </li>
 <li>
 
 Analyst QuickTake: 
 Motional, resulting from a 
 <a href="https://techcrunch.com/2019/09/23/aptiv-and-hyundai-form-new-joint-venture-focused-on-autonomous-driving/">
 USD 4 billion collaboration
 </a>
 between Hyundai and Aptiv, is working on commercializing autonomous taxis by 2024. However, the funding situation for Motional became uncertain as Aptiv decided to cut stake and discontinue future funding 
 <a href="https://sp-edge.com/updates/26156">
 in January 2024,
 </a>
 leaving Hyundai as the primary backer unless Motional attracted additional investors. We believe the new funds injected by Hyundai would help the company&rsquo;s continued operations. Motional also secured a bridge loan to meet temporary financial needs 
 <a href="https://sp-edge.com/updates/27629">
 in March 2024.
 </a>
 The broader robotaxi industry is marked by uncertainty and gradual progress toward commercial viability, with incumbents like Alphabet&rsquo;s Waymo 
 <a href="https://sp-edge.com/updates/28523">
 expanding its services
 </a>
 and others like GM&rsquo;s Cruise 
 <a href="https://sp-edge.com/updates/28329">
 recovering from setbacks.
 </a>
 
 </li>
 </ul>
 
 
</div>

<div>
 
 <a href="https://techcrunch.com/2024/05/02/hyundai-is-spending-close-to-1-billion-to-keep-self-driving-startup-motional-alive/">
 TechCrunch
 </a>
 
 
 <a href="https://www.investing.com/news/economy/aptiv-to-lower-equity-interest-in-joint-venture-with-hyundai-cuts-fy-sales-view-3414540">
 Investing.com
 </a>
 &nbsp;
 
</div>

Last-mile Delivery Automation

ANALYST_QUICK_TAKE

INCUMBENTS_PRESENT

<div>
 Hyundai plans to invest nearly USD 1 billion in the Hyundai-Aptiv autonomous vehicle joint venture, Motional. This investment will provide the startup capital for continued operations. The specifics of the deal include Hyundai injecting USD 475 million directly into the joint venture and buying additional equity worth USD 448 million from its partner Aptiv. As a result, Hyundai will gain an 85% majority stake in Motional.
 Aptiv, which formerly held half the stakes in Motional, is diminishing its investment due to the expensive costs and extensive timeframe required to commercialize robotaxis.
 The completion of this deal is expected to occur by the third quarter of 2024, pending approval from regulatory bodies and customary closing conditions.
 
</div> Analyst QuickTake: 
 Motional, resulting from a <a href="https: 
//techcrunch.com/2019/09/23/aptiv-and-hyundai-form-new-joint-venture-focused-on-autonomous-driving/"> USD 4 billion collaboration </a> between Hyundai and Aptiv, is working on commercializing autonomous taxis by 2024. However, the funding situation for Motional became uncertain as Aptiv decided to cut stake and discontinue future funding <a href="https: 
//sp-edge.com/updates/26156"> in January 2024, </a> leaving Hyundai as the primary backer unless Motional attracted additional investors. We believe the new funds injected by Hyundai would help the company’s continued operations. Motional also secured a bridge loan to meet temporary financial needs <a href="https: 
//sp-edge.com/updates/27629"> in March 2024. </a> The broader robotaxi industry is marked by uncertainty and gradual progress toward commercial viability, with incumbents like Alphabet’s Waymo <a href="https: 
//sp-edge.com/updates/28523"> expanding its services </a> and others like GM’s Cruise <a href="https: 
//sp-edge.com/updates/28329"> recovering from setbacks. </a>

Motional receives USD 448 million from Hyundai; Hyundai to buy out stake from Aptiv for controlling 85% interest

Autonomous and connected technologies shaping the future of the auto industry

Auto Tech

<div>
 Hyundai is set to invest approximately USD 1 billion in Motional, a Hyundai-Aptiv autonomous vehicle joint venture. This investment will consist of a direct payment of USD 475 million and the purchase of additional equity worth USD 448 million from Aptiv. This will result in Hyundai owning 85% of Motional.
 Aptiv, which previously held 50% of the shares in Motional, will reduce its investment due to the high costs and extended time needed to commercialize robotaxis.
 The transaction is expected to be finalized by the third quarter of 2024, pending regular regulatory approvals and closing conditions.
</div> Analyst QuickTake: 
 Motional, resulting from a <a href="https: 
//techcrunch.com/2019/09/23/aptiv-and-hyundai-form-new-joint-venture-focused-on-autonomous-driving/"> USD 4 billion collaboration </a> between Hyundai and Aptiv, is working on commercializing autonomous taxis by 2024. However, the funding situation for Motional became uncertain as Aptiv decided to cut stake and discontinue future funding <a href="https: 
//sp-edge.com/updates/26156"> in January 2024, </a> leaving Hyundai as the primary backer unless Motional attracted additional investors. We believe the new funds injected by Hyundai would help the company’s continued operations. Motional also secured a bridge loan to meet temporary financial needs <a href="https: 
//sp-edge.com/updates/27629"> in March 2024. </a> The broader robotaxi industry is marked by uncertainty and gradual progress toward commercial viability, with incumbents like Alphabet’s Waymo <a href="https: 
//sp-edge.com/updates/28523"> expanding its services </a> and others like GM’s Cruise <a href="https: 
//sp-edge.com/updates/28329"> recovering from setbacks. </a>

<div>
 Motional, a developer of autonomous vehicle technology, has obtained a bridge loan to cater to its immediate financial requirements. The specifics about the amount and conditions of this loan haven't been disclosed yet.
 This loan will act as capital to sustain its operations, and enable shareholders, among them main supporter Hyundai, to settle on options for long-term funding.
 
</div> Analyst QuickTake: 
 Motional, resulting from a USD 4 billion collaboration between Hyundai and Aptiv, is working on commercializing autonomous taxis by 2024. However, the company's financial situation remains uncertain as Aptiv decided to cut stake and discontinue future funding <a href="https: 
//sp-edge.com/updates/26156"> in January 2024, </a> leaving Hyundai as the primary backer unless Motional attracts additional investors. The company also laid off around 5% of its staff in administrative roles <a href="https: 
//sp-edge.com/updates/27054"> in February 2024, </a> citing the need to focus on its commercial goals.

Motional secures bridge loan to temporarily meet financial needs

<div>
Autonomous vehicle developer, Motional, plans to lay off around 5% of its workforce, equating to fewer than 70 employees. These layoffs will primarily impact non-technical roles, specifically administrative positions situated in Boston, where the company conducts its autonomous vehicle testing.
The layoffs are part of Motional's strategy to redirect resources towards sectors that it believes will crucially contribute to its long-term commercial success.
Despite these anticipated layoffs, Motional maintains that it will continue to employ the necessary talent required to develop its technology and achieve its commercial objectives. Furthermore, the company is considering potential outside funding opportunities. Motional also reports that its current financial resources are ample enough to sustain operations until the end of Q1 2024.
</div> Analyst QuickTake: 
 Motional recently confirmed it will be working on a next-generation vehicle <a href="https: 
//sp-edge.com/updates/25367"> with partner Kia </a> and developing an <a href="https: 
//sp-edge.com/updates/24236"> autonomous Hyundai Ioniq 5 </a> robotaxi for launch in 2024. However, the funding situation for the company is uncertain as Aptiv decided to cut stake and discontinue future funding <a href="https: 
//sp-edge.com/updates/26156"> in January 2024, </a> leaving Hyundai as the primary backer unless Motional attracts additional investors.

Motional lays off 5% of staff to reallocate resources for commercial success

<div>
 Motional, the autonomous vehicle developer, is planning to cut around 5% of its staff, affecting fewer than 70 employees mostly in non-technical roles at its Boston location where autonomous vehicle testing occurs.
 The company aims to redirect its resources into areas that are predicted to have a direct impact on its long-term commercial success.
 Despite the job cuts, Motional maintains sufficient staff required for technological development and achieving its commercial goals. The company is on the lookout for external funding opportunities, and is secure in its financial resources, expected to support operations until the conclusion of Q1 2024.
</div> Analyst QuickTake: 
 Motional recently confirmed it will be working on a next-generation vehicle <a href="https: 
//sp-edge.com/updates/25367"> with partner Kia </a> and developing an <a href="https: 
//sp-edge.com/updates/24236"> autonomous Hyundai Ioniq 5 </a> robotaxi for launch in 2024. However, the funding situation for the company is uncertain as Aptiv decided to cut stake and discontinue future funding <a href="https: 
//sp-edge.com/updates/26156"> in January 2024, </a> leaving Hyundai as the primary backer unless Motional attracts additional investors.

<div>
 Automotive tech firm Aptiv is reducing its stake in autonomous vehicle company Motional due to high costs and slow market adoption for a robotaxi service. Aptiv and Hyundai's joint $4 billion venture, Motional, is working on commercialising self-driving taxis by 2024. Despite Aptiv's withdrawal, Motional remains optimistic, concentrating on scaling its driverless services and developing a new robotaxi with Kia. The origins of Motional go back to a startup acquired by Delphi, which later became Aptiv, and partnered with Hyundai to form the JV. 
</div>

Apitiv to cut stake and stop funding self-driving tech company Motional

PROMINENT_CATEGORY

Hyundai Motor Group and Motional are collaborating to co-develop autonomous, all-electric IONIQ 5 robotaxis at Hyundai's innovation center in Singapore. The robotaxis will be deployed in Motional's commercial service in the US starting in 2024.The IONIQ 5 vehicles will integrate Motional's driverless technology during assembly to meet US Federal Motor Vehicle Safety Standards (FMVSS). They will have a steering wheel and pedals for human takeover when necessary.The vehicles have passed testing and some models are already in the US.Analyst QuickTake: Motional is currently conducting pilot programs primarily in Las Vegas, Nevada, offering its services on platforms such as <a href="https://sp-edge.com/updates/13614">Uber, </a><a href="https://sp-edge.com/updates/12419">Lyft, </a>and <a href="https://motional.com/news/motional-and-launch-demand-robotaxi-service-las-vegas">Via. </a>With the imminent production of ready-to-deploy vehicles, there is an optimistic outlook for Motional to enhance and expand its operational scale.

All Updates

Motional receives USD 448 million from Hyundai; Hyundai to buy out stake from Aptiv for controlling 85% interest

Motional receives USD 448 million from Hyundai; Hyundai to buy out stake from Aptiv for controlling 85% interest

Motional secures bridge loan to temporarily meet financial needs

Motional lays off 5% of staff to reallocate resources for commercial success

Motional lays off 5% of staff to reallocate resources for commercial success

Apitiv to cut stake and stop funding self-driving tech company Motional

Hyundai and Motional partner to co-develop production-ready IONIQ 5 robotaxis in Singapore

Motional expands robotaxi service to nighttime hours in Las Vegas

Motional and Uber to launch public robotaxis for the Uber users in Las Vegas

Motional cuts down workforce to reallocate resources