Apple ($ AAPL) Tesla ($ TSLA) killer not sent for at least half a decade

Photographer: Sam Hall / Bloomberg

Apple Inc. will take at least half a decade to launch an autonomous, electric vehicle, because development work is still at an early stage, according to people familiar with the efforts.

The Cupertino, California-based technology giant has a small team of hardware engineers who design propulsion systems, vehicle interiors and external auto parts, with the goal of eventually steering a vehicle. This is a more ambitious goal than in previous years, when the project mostly focused on creating an underlying self-management system. The company also added more former Tesla Inc. drivers to the project.

However, some Apple engineers of the project believe that the company could release a product within five to seven years if Apple continues with its plans. The car is not near the production stage, the people said, although they have warned that timelines could change. They asked not to be identified and discussed sensitive, internal work. The majority of the team currently works at home or in the office for a limited time, which slows down the company’s ability to develop a complete vehicle. An Apple spokesman declined to comment.

An Apple car will compete with Tesla electric vehicles and offerings from companies such as Startup Lucid Motors and established manufacturers such as Mercedes-Benz from Daimler AG and Chevrolet from General Motors Co. An important distinction is Apple’s ability to integrate its self-management system, an expensive initiative that spurred the company to develop its own software, sensor hardware and chip technologies. According to the people familiar with the project, the goal is to allow a user to enter their destination and drive there with little or no other involvement.

Apple does not manufacture its own products and is likely to follow the same approach with a vehicle. However, it is unclear which company would mount the car. In its first attempt about five years ago, Apple worked with engineers from Magna International Inc., a major manufacturer of automotive contracts. Reuters recently reported that Apple intends to start manufacturing a car as early as 2024.

Apple has continued the investigation into building its self-driving car system for a third-party car partner rather than its own vehicle, the people said, and eventually they can abandon their own car efforts again in favor of this approach.

The company first planned to build an electric car in 2014 and hire hundreds of hardware engineers before they could quickly work it back in 2016 to focus on the self-driving car system. From 2016 to 2019, Apple cut hundreds of workers from the team. However, it kept a few hardware engineers with expertise in auto parts who either stayed with the auto project or worked on other initiatives.