According to a report released, Apple Inc. is seeking to accelerate its car development ambitions by focusing on self-driving functions. Apple AAPL, +2.85 percent has been looking into developing both a completely self-driving electric vehicle and one with less self-driving functionalities, but Bloomberg News reported that the company now wanted to concentrate on the completely self-driving option. According to the story, Apple hopes to launch the car in 4 years, rather than the 5 to 7 years it had previously planned.
The ability of Apple to fulfill its new objective will be contingent on the company’s ability to complete self-driving technology on time, according to the Bloomberg analysis, which also noted that established automakers such as Tesla Inc. TSLA, +0.68 percent are still not ready to release fully autonomous cars despite years of advancement. According to a Bloomberg article, Apple is considering removing the steering wheel as well as pedals, as well as allowing for “an emergency takeover mode.”
Doug Field, who had seized over the initiatives after spending time as chief of engineering at Tesla, left for the Ford Motor Co. F, -1.51 percent in September, amid a rumored exodus of top management from the company. Apple replaced him with Kevin Lynch, an internal manager who worked on the Apple Watch and has hired experienced workers, including Ulrich Kranz, the former CEO of Canoo Inc. GOEV, -10.28 percent, and Christian Moore, the ex-head of Tesla’s automated-software development. Lynch does not even have automotive expertise but has hired experienced workers, such as recent hires of ex Canoo Inc. GOEV, -10.28 percent Chief Executive Ulrich Kranz as well as Christian Moore, the ex-head of Tesla’
MarketWatch reached out to Apple for comment on its electric vehicle plans, but the company did not respond. After the Bloomberg analysis, Wedbush analyst Dan Ives commented, “We continue to believe it’s a question of when, not if, Apple joins the EV competition.” He believes Apple would release “its own stand-alone automobile” by 2025, with a 60 percent to 65 percent possibility of doing so.
Ives expects the firm to announce a collaboration in 2022 to assist it to achieve its automotive goals. “Given the margin as well as financial model ramifications down the line, along with the tactical product risk around such a gigantic endeavor, we would prefer to see Apple collaborate on the Electric Vehicle path than start developing its vehicles/factories,” he said.
Apple’s stock soared quickly after the Bloomberg article was released, rising 2.6 percent in afternoon trading. Apple’s stock has risen 7.7% in the last three months, while the Dow Jones Industrial Average DJIA, -0.17%, of which Apple is a component, has risen 2.7 percent.