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Apple Inc. (NASDAQ:AAPL) Wants to Build Cars, Not Answer Questions

apple inc (AAPL) Project Titan

Apple Inc. car project, codenamed Project Titan has the tech and auto space abuzz since news about the firm’s interest broke earlier this year. Apple Inc. is forging ahead with its plans to enter the auto space despite the fact that it has not confirmed or denied the rumors. The Wall Street Journal reports that Apple has given the team behind project Titan the permission to increase the total number of people working on the project from 600 to 1800.

apple inc car

WSJ reports that sources close to matter have said that the firm sees Project Titan internally as a “committed project” and that a target ship date of 2019 has been set for the car. The firm has also had meetings with officials from California’s Department of Motor Vehicles. Apple has met with officials from GoMentum Station, a high-security Bay Area test site for driverless cars.

Actions speak louder than words

Apple is still tight-lipped about its car project – last week when CEO Tim Cook was asked about the car project on The Late Show with Stephen Colbert, he smartly evaded the question by saying, “We look at a number of things along the way,” Cook responded, “and we decide to really put our energies in a few of them.” The market has been busying itself trying to figure out  how Apple intends to disrupt the automobile space.

Apple entered into the auto space with its CarPlay software for managing the infotainment system in cars. Hence, there were feelers that Apple might be building an OS on which driverless cars and infotainment systems will run. In fact, there were rumors that Apple is in talks with BMW on using BMW’s i3 EVs as the building block for its own EV project.

Later it seemed that Apple would build its cars from scratch but they will be widely different in design, shape and size. Analyst Gene Munster of Piper Jaffray explored the firm’s interest in the auto space and he said that Apple was planning to build a driverless EV. The WSJ report now holds that Apple is indeed planning to build a car but the first iCar won’t necessarily be a driverless car.

Apple has some unanswered questions

Apple surely has an interest in building cars; however, building cars is tougher than building iPhones. More so, making cars on a scale large enough to disrupt the auto industry requires taking a deep plunge – analysts are still clamoring that Tesla should stop being a startup.

Close sources say that a 2019 ship date doesn’t necessarily mean you’ll get to drive an iCar in three years. However, until Apple comes out to make an official statement about Project Titan, Apple is building a car and it could either make or break the firm.

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Victor Alagbe is a seasoned business and finance writer with a specialty in writing about how to invest for the long-term in healthcare, pharmacology, energy and tech stocks. His long-term focus is on stocks that provide a nice mix of growth and income. For the short term, he passionately writes about trading stock options for the excitement and leverage that stock options offer.

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