The killer of Apple ($ 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 at an early stage, according to people familiar with the efforts.

The technology giant based in Cupertino, California, has a small team of hardware engineers who develop transmission systems, interior and exterior vehicle designs with the goal of finally shipping a vehicle. This is a more ambitious goal than in previous years, when the project focused primarily on creating an underlying autonomous driving system. The company has also added more former Tesla Inc. executives. to the project.

Still, some Apple engineers on the project believe the company could launch a product within five to seven years if Apple follows its plans. People said the car is not at all close to the production stage, although they warned that deadlines could change. They asked not to be identified in sensitive internal work. Currently, most of the team works from home or in the office for a limited time, which decreases the company’s ability to develop a complete vehicle. An Apple spokesman declined to comment.

An Apple car would rival Tesla’s electric vehicles and the offerings of companies such as Novelty Lucid Motors and established manufacturers such as Daimler AG’s Mercedes-Benz and General Motors Co.’s Chevrolet. A key differential would be Apple’s ability to integrate its self-promotion system, an expensive initiative that has driven the company to develop its own software, sensor hardware and chip technologies. The goal is to let a user enter their destination and drive there with little or no other commitment, depending on the people who know the project.

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An Apple test car for the autonomous driving system in 2017

Bloomberg

Apple does not manufacture its own products and will likely take the same approach with a vehicle. However, it is not clear which company would ride the car. In its first attempt about five years ago, Apple He worked with engineers at Magna International Inc., a major contract manufacturer in the automotive industry. Reuters recently reported that Apple aims to start producing a car as early as 2024.

Apple has continued to investigate building its autonomous driving system for an external vehicle partner instead of its own vehicle, according to people, and could eventually abandon its own efforts in favor of this approach again.

The company first set out to build an electric car in 2014 and hired hundreds of hardware engineers for the effort before handing it out quickly around 2016 to focus on the autonomous car system. From 2016 to 2019, Apple cut hundreds of team workers. However, he retained some hardware engineers with experience in vehicle components who either stayed on the car project or worked on other initiatives.

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