It was announced in December Apple Inc. (NASDAQ: AAPL) is working on the design of an all-electric, self-driving car. At the time, it was rumored that the car was aiming to be launched in 2024 and take over Tesla Inc. (NASDAQ: TSLA) in the race for a fully autonomous vehicle.
A new Bloomberg report states that it will take Apple five to seven years to launch a stand-alone car, as the company is still in the early stages of development, with a fairly small team. Apple’s team of engineers developed the vehicle’s propulsion systems and interior and exterior in order to eventually deliver a self-driving vehicle. Apple also added former Tesla employees to the team.
It seems that Apple can take a similar approach as Tesla. While previous rumors claimed that Apple was working primarily on self-management systems, now the company seems to be taking everything by designing an entire vehicle around the concept of self-management.
Tesla has taken a similar approach, designing its own vehicles, batteries, standalone software and even designing its own computer chips, a move that Apple recently made after Tesla.
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A key differentiator is that Apple does not produce its own products. Apple will most likely have to rely on production from outside companies, which can reduce profit margins. According to recent studies, Tesla’s profit margins are over 20% per vehicle.
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