Apple killer ($ AAPL) Tesla ($ TSLA) will not be shipped for at least half a decade

Apple Park headquarters in Cupertino, California.

Photographer: Sam Hall / Bloomberg

Apple Inc. it will take at least half a decade to launch an autonomous electric vehicle, as development work is still in its infancy, according to people with knowledge of the effort.

The technology giant based in Cupertino, California, has a small team of hardware engineers who develop drive systems, interior and exterior design of the vehicle, in order to finally deliver a vehicle. This is a more ambitious goal than in previous years, when the project focused mainly on creating a self-driving system. The company also added several former directors of Tesla Inc.

However, some Apple engineers in the project believe that the company could launch a product in five to seven years if Apple continues its plans. The car is not approaching the production stage, people said, although they warned that the deadlines may change. They asked not to be identified when discussing sensitive internal work. Most of the team currently works either from home or in the office for a limited period of time, slowing down the company’s ability to develop a complete vehicle. An Apple spokesman declined to comment.

An Apple car would rival electric vehicles from Tesla and offers from companies such as the upcoming Lucid Motors and well-known manufacturers such as Mercedes-Benz Daimler AG and Chevrolet General Motors Co. A key differentiator would be Apple’s ability to integrate its autopilot system, an expensive initiative that led the company to develop its own software technologies, sensor hardware and chips. The purpose is to allow the user to enter their destination and be driven there with little or no other involvement, according to people familiar with the project.

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An Apple test car for the automatic driving system in 2017

Bloomberg

Apple does not produce its own products and will probably adopt the same approach as a vehicle. However, it is not clear which company would assemble the car. In the first attempt about five years ago, Apple worked with engineers at Magna International Inc., a leading contract manufacturer in the automotive industry. Reuters recently reported that Apple plans to start producing a car in 2024.

Apple has continued to investigate building its self-driving system for a third-party car partner, rather than for its own vehicle, people said, and could eventually give up its own efforts in favor of this approach.

The company first set out to build an electric car in 2014, hiring hundreds of hardware engineers for the effort before quickly repairing it around 2016 to focus on the self-driving car system. From 2016 to 2019, Apple eliminated hundreds of workers from the team. However, it has maintained some hardware engineers with experience in automotive components who have either stayed on the automotive project or worked on other initiatives.

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