Apple Inc. (NASDAQ:AAPL) is pushing to accelerate the development of its electric car and launch as early as 2025. It will refocus the project around full self-driving capabilities, although details around the matter remain thin.
The mobile giant has never confirmed periodic media reports that it is entering the EV market. However, Apple gained as much as 2.4% in shares to $157.23 after Bloomberg reported the news on Thursday.
The Apple Car project called “Project Titan” is now steered by former Apple Watch Executive Kevin Lynch.
According to the Bloomberg report, some people working on the project are skeptical about the timeline regardless of its recent progress that includes the car’s underlying self-driving system, processor chips, and advanced sensors.
Wedbush analyst Dan Ives reacted to Bloomberg report and said: “We continue to believe it’s a matter of “when” not “if” Apple enters the EV race, and this will add another $30+ per share of TAM to the growth story over the next few years”.
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The Apple car chip is the most advanced component that Apple has developed internally and is made up primarily of neural processors that can handle the artificial intelligence needed for autonomous driving.
People familiar with the situation said that Apple has recently reached a key milestone in developing the car’s underlying self-driving system. The company believes that it has completed much of the core work on the processor it intends to steer the first generation of the car.
Managing partner of the Future Fund Active ETF (FFND) Gary Black, is skeptical about an Apple car. “Brands don’t extend into categories where there is no clear distinctive competence,” he tells Barron’s. He added that the idea of an Apple car is just as silly as a Tesla phone.
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