The long-awaited Apple Inc AAPL car is likely still several years away, but new reports suggest the company has made changes that make the EV project more attainable.
What To Know: Timelines for an electric vehicle from Apple have been pushed back multiple times due to development issues, and it looks like that trend has continued into the new year.
According to a Bloomberg report, Apple has pivoted to a less ambitious design for the Apple car in order to actually deliver on bringing an EV to market.
People with knowledge of the matter reportedly said the company has tossed out the idea of making a completely driverless car and instead began working on building an EV with more limited features. The report indicates that the car will have more basic features, similar to current Tesla Inc TSLA capabilities.
The tech company had been targeting a release in 2026, but the report indicates that after shifting plans once again, Apple does not expect to introduce the car until 2028 at the earliest. Benzinga reached out for comment, but Apple has not yet responded to the request.
Apple’s revenue slowed significantly last year as the company turned in multiple quarters of declining revenue growth. The company appears to be making pushes into new categories in order to turn things around. Apple is set to release its Apple Vision Pro headset next month, and early trends show that demand is well above what was originally expected.
Apple’s push into the EV space is being viewed as a pivotal moment internally, according to Bloomberg. If the company is not able to deliver a product with reduced expectations, management may reconsider the project, dubbed Titan, altogether.
The new strategy was reportedly adopted after Apple’s board pressed top executives about a concrete plan for the car. Apple is already spending hundreds of millions of dollars a year on R&D for the project, as well as salaries and systems for testing and engineering parts.
The move from Apple also raises broader questions about the current state of the EV industry. Many of the legacy OEMs have pumped the brakes on electrification efforts due to demand concerns, and Hertz recently announced that it would be slashing one-third of its global EV fleet over the course of the year.
Still, many of Apple’s big tech competitors have made pushes for EV exposure. Amazon.com Inc AMZN has invested in Rivian Automotive Inc RIVN and is currently in the process of transitioning its fleet to electric and Alphabet Inc’s GOOG Waymo division has ramped up its efforts on autonomous capabilities.
Apple’s flagship EV is now being viewed as a Tesla “me-too product” internally, but the company hopes to set itself apart with its sleek design and unique user interface.
Following the initial release, which is now reportedly set for 2028, Apple plans to introduce new features, including an upgraded system that supports Level 4 autonomy.
AAPL Price Action: Apple shares were up 0.58% at $195.01 at the time of publication, according to Benzinga Pro.
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