Why Apple Could Be A Legitimate EV Player Alongside Tesla: 'Cars Will Be Computers On Wheels'

Reports suggest that Apple Inc AAPL could release a self-driving electric vehicle as soon as 2024.

Apple could be a legitimate player, alongside Tesla Inc TSLA, in the electric vehicle market, according to The Westly Group's Steve Westly.

"Apple is a natural [EV market entrant]. They understand beautiful products and seamless integration with phones and the other parts of your life," Westly said Tuesday on CNBC.

The ways in which vehicles are viewed is changing, Westly said.

"For the last 100 years, cars were about internal combustion engines and brakes and tires and all that good stuff we love. Going forward, cars will be computers on wheels."

Apple has been in "production work for close to a decade," according to Westly. He expects Apple to release its first electric vehicle within two or three years.

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Tesla and Apple are two of the world's largest companies with the capital to invest in research and development and the ability to win the race for autonomous vehicles, Westly said.

"A lot of new entrants, the old brands, are really going to have to up their game to compete with the likes of Tesla and Apple."

AAPL TSLA Price Action: Apple was up 1.53% at $151.23, while Tesla was down 2.37% at $1,179.86 at time of publication.

Photos: courtesy of Apple and Tesla.