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Kia chooses AI-driven Upstart as tech partner for US Launch of EV9 SUV

EditorIsmeta Mujdragic
Published 02/21/2024, 09:17 AM
Updated 02/21/2024, 09:17 AM
© Reuters.

SAN MATEO, Calif. - Upstart (NASDAQ: NASDAQ:UPST), an artificial intelligence lending marketplace, has been chosen as the exclusive technology provider for Kia's launch of its new EV9 SUV in the United States. This collaboration has enabled Upstart's Build & Price Reservations feature to be the sole reservation and deposit system for the EV9, accessible through all Kia dealerships nationwide.

Customers were able to reserve the EV9 and place a deposit via the dealers' websites, utilizing Upstart's system to select their preferred configurations, including trim level, color, and additional packages. The technology provided by Upstart not only facilitated a smoother transaction for potential buyers but also allowed Kia dealers to monitor demand and gain insights into customer preferences.

Alex Rouse, Vice President and General Manager of Auto at Upstart, expressed enthusiasm about the role Upstart's Build & Price Reservations played in the EV9's launch. Rouse highlighted the benefits of the connected retailing platform, which aimed to enhance the car-buying experience with efficiency and ease.

The Upstart Auto Retail suite, which includes the Build & Price Reservations, offers digital products designed to create a cohesive online to in-store shopping journey. Dealers equipped with the full suite can offer a comprehensive car-buying process, from the initial online reservation to the final vehicle pickup, including the financing aspect.

Since December 2020, Upstart Auto Retail has been a certified provider in the Kia Digital Certified Solutions program. It also serves as an approved digital retail provider for several other original equipment manufacturers (OEMs), such as Acura, Honda (NYSE:HMC), Lexus, Mercedes-Benz (OTC:MBGAF), Mitsubishi, Subaru (OTC:FUJHY) of America, Toyota (NYSE:TM), and Volkswagen (ETR:VOWG_p).

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Upstart, headquartered in San Mateo, California, and Columbus, Ohio, is recognized for its AI-driven marketplace that connects consumers with banks and credit unions offering credit products. The company's AI models and cloud applications aim to facilitate more approvals at lower rates for a diverse range of borrowers while providing a digital-first experience.

According to Upstart, over 80% of loan applicants receive instant approval without the need for uploading documentation.

The information for this article is based on a press release statement.

InvestingPro Insights

As Upstart (NASDAQ: UPST) secures its position as the exclusive technology provider for Kia's EV9 SUV launch, the company's financial health and stock market performance are crucial for investors monitoring this partnership's potential impact. Upstart's market capitalization currently stands at $2.21 billion, reflecting the company's size and investor valuation within the tech and lending marketplace.

According to InvestingPro, the company's stock price has experienced significant volatility, which is a critical factor for investors to consider. This high price volatility is underscored by a recent downturn, with the stock price declining by 21.87% over the last month. Despite these fluctuations, Upstart's liquid assets do exceed its short-term obligations, which may provide some reassurance regarding the company's ability to manage its immediate financial commitments.

InvestingPro Tips further reveal that analysts are not optimistic about Upstart's profitability in the near term, with seven analysts revising their earnings estimates downwards for the upcoming period. Additionally, the company has not been profitable over the last twelve months and does not pay a dividend to shareholders, which might influence the investment strategy of those seeking regular income from their holdings.

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For those interested in diving deeper into Upstart's financial metrics and gaining access to additional InvestingPro Tips, there are more insights available. For instance, the platform lists several additional tips that could provide a more comprehensive understanding of Upstart's financial health and market potential. To explore these insights and enhance your investment strategy, consider using the promo code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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