Motional, which started as autonomous vehicle startup nuTonomy, was acquired by Delphi for $400 million before becoming part of a $4 billion Hyundai-Aptiv joint venture in 2019. The company is currently testing its autonomous vehicles in several cities and plans to launch a robotaxi service using driverless Hyundai Ioniq 5 vehicles in 2024. However, the company has yet to begin charging for rides or deliveries, and its future funding needs remain uncertain.
Key takeaways:
- Hyundai is investing nearly $1 billion in self-driving startup Motional, giving the automaker a majority stake in the company. This includes a direct investment of $475 million and an additional $448 million to buy 11% of Aptiv’s common equity interest in Motional.
- Aptiv, a joint venture partner in Motional, plans to reduce its common equity interest in the company from 50% to about 15%, leaving Hyundai with 85% control.
- Motional, which started as Boston-based autonomous vehicle startup nuTonomy, has been testing its autonomous vehicles in several cities and plans to launch a robotaxi service using driverless Hyundai Ioniq 5 vehicles in 2024.
- The investment comes as the robotaxi industry faces uncertainty, with competition from Waymo, GM's Cruise, and Tesla. Motional has not yet begun charging for rides or deliveries.