Apple’s ($ AAPL) Tesla ($ TSLA) Killer Won’t Ship For At Least Half A Decade

Photographer: Sam Hall / Bloomberg

Apple Inc. will take at least half a decade to bring an autonomous, electric vehicle to market, as development work is still in its infancy, say people with knowledge of the efforts.

The Cupertino, California-based technology giant has a small team of hardware engineers who develop powertrain systems, vehicle interiors and exterior body designs with the ultimate goal of shipping a vehicle. That is a more ambitious goal than in previous years, when the project was mainly aimed at creating an underlying self-driving system. The company also has more ex-executives from Tesla Inc. added to the project.

Still, some Apple engineers on the project believe the company could release a product within five to seven years if Apple goes ahead with its plans. The car is nowhere near the production stage, the people said, although they warned the timelines could change. They asked not to be identified when discussing sensitive internal work. The majority of the team currently works at home or in the office for a limited amount of time, slowing down the company’s ability to develop a full vehicle. An Apple spokesman declined to comment.

An Apple car would rival Tesla electric vehicles and offerings from companies such as upstart Lucid Motors and established manufacturers such as Daimler AG’s Mercedes-Benz and General Motors Co.’s Chevrolet. A key differentiator is Apple’s ability to integrate its self-driving system, an expensive initiative that has spurred the company to develop its own software, sensor hardware and chip technologies. The goal is to have a user enter their destination and drive there with little or no other involvement, according to the people familiar with the project.

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An Apple test car for the self-driving system in 2017

Bloomberg

Apple doesn’t manufacture its own products and will likely take the same approach with a vehicle. However, it is unclear which company would assemble the car. In its first attempt about five years ago, Apple worked with engineers from Magna International Inc., a major contract manufacturer in the automotive industry. Reuters recently reported that Apple plans to start producing a car as early as 2024.

Apple has continued to explore building its self-driving car system for a third-party auto partner rather than its own, people said, and it could eventually again abandon its own auto efforts in favor of this approach.

The company first started building an electric car in 2014, hiring hundreds of hardware engineers for the effort, before quickly scaling back around 2016 to focus on the self-driving car system. From 2016 to 2019, Apple cut hundreds of employees from the team. However, it kept some hardware engineers with expertise in auto parts who either stayed with the auto project or worked on other initiatives.

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