Apple to Produce Autonomous Electric Vehicles in 2024... Also Developing Batteries In-House

Tesla's Stock Plummets on First Day of S&P 500 Inclusion

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Apple is accelerating its entry into the autonomous electric vehicle market. It is reported that the company is intensifying its technology development with the goal of producing electric vehicles equipped with self-designed batteries by 2024.

Major foreign media outlets cited anonymous sources on the 21st (local time), stating that Apple is making progress in developing autonomous vehicles. According to reports, Apple aims to produce electric vehicles by 2024, but due to the impact of the novel coronavirus (COVID-19), this plan may be somewhat delayed until 2025 or later. Foreign media also reported that Apple has the goal of making personal vehicles directly targeting the consumer market.

Apple has been conducting an autonomous vehicle project called "Project Titan" since 2014. After internal disagreements made progress difficult, the company shifted its focus to software development and changed its goals. However, in 2018, Apple recruited experts such as Doug Field, Tesla’s Senior Vice President of Engineering, and has since been pushing forward with the so-called "Apple Car" development. On the 9th, Taiwanese media reported that Apple is currently in preliminary negotiations with Taiwanese automotive electronics supplier TSMC for Apple Car development and is planning to establish a domestic factory. Sources explained that the project has progressed enough for Apple to pursue the goal of making passenger cars.

The core of the Apple Car currently being pursued is expected to be a self-designed battery. Unlike Tesla electric vehicles, known for their so-called "skateboard" platform, Apple plans a "monocell" design that eliminates pouches and modules to increase the capacity of each battery cell, according to sources. Foreign media expect this to potentially extend the vehicle’s driving range. Additionally, Apple is researching the use of lithium iron phosphate (LFP) batteries, which have a lower risk of overheating, the sources added. It is also known that some components, such as LiDAR (Light Detection and Ranging) sensors used to detect surrounding objects and distances, will be procured externally.

Currently, sources predict that Apple will collaborate with manufacturers for vehicle assembly. Although Apple has produced hundreds of millions of electronic products annually, it has no experience manufacturing automobiles, making it difficult to establish a supply chain. Foreign media explained that to profit from the vehicle business, a production capacity of over 100,000 units per year is required. Elon Musk, Tesla’s CEO, also reportedly took 17 years just to establish the supply chain, foreign media added.

A person involved in Project Titan said, "If there is a company on Earth with the resources to form a supply chain, it would probably be Apple. But at the same time, this is not a cellphone," highlighting the difficulties in forming a supply chain. Accordingly, sources said there remains a possibility that Apple may only develop autonomous driving systems that can be installed in existing automakers’ vehicles.

Leading electric vehicle maker Tesla, which showed rapid growth this year, experienced a bitter drop in stock price on the 21st (local time) following the long-awaited inclusion in the S&P 500 index and the sudden news about the Apple Car. On that day, Tesla’s stock closed at 649.86, down 6.5% from the previous day, on the New York Stock Exchange. Although it was the first day of inclusion in the S&P 500 index and attracted market attention, fears over COVID-19 variants and speculative demand aiming for capital gains turned into selling pressure. Coupled with the news that Apple is accelerating electric vehicle development, Tesla’s stock price could not avoid a decline.

This content was produced with the assistance of AI translation services.