According to a report from Reuters, Apple
Internally, this secretive project was dubbed as Project Titan. There have been several rumors about it based on the company's hiring decisions, however this is the most credible sign that it's progressing into something tangible. Earlier, there were reports that the project had been scrapped in favor of an effort to create a software OS for cars.
However, this latest reporting seems to confirm that the company is looking to launch an autonomous, electric vehicle for consumers which differs from other companies like Google's
Maybe the most interesting insight is that Apple seems to be working on a new battery design that is revolutionary in terms of lower costs and more effectiveness. One beneficiary of the news could be Magna International
This fits with Apple's strategy over the past decades as it focuses on the design and tech while letting third-parties handle the actual manufacturing. However, as Tesla
Of course, Apple is the world's most valuable company with a $2.2 trillion market cap and able to borrow money at a cheaper rate than the U.S. Treasury. In recent years, Apple's products have been more modest such as the Apple watch, Airpods, or software bundles. This would be its first big swing since the iPhone.
Since becoming CEO, Tim Cook has been pretty cautious. But, this would be the first major undertaking of his tenure. Interestingly, Tesla CEO Elon Musk tweeted that he had approached Apple about a merger or partnership when Tesla was struggling a few years ago and that he was rebuffed. Tesla shares finished 6.5% lower following the news, while Apple gained 1.2%.
Unlike Teslas, Apple's cars will integrate LIDAR sensors for its autonomous systems. Most believe that the company will look to build these internally if it does go ahead with making cars.
Overall, Apple's plan is a sign that the EV market's growth is only beginning. Recently, Japan announced that it wants to phase out all gas-powered cars by the middle of the next decade. Apple is looking to capture some of its growth. Project Titan is the most obvious way but it could also do so other ways through its battery technology, and autonomous driving software.