Apple has been rushing its secret team to produce its electric car (EV) car by 2020, after the release of Tesla and General Motors cars in 2017.
Apple Inc. has been insistent on its secret team to come up with a car by 2020 according to Bloomberg. Apple has always taken a similar approach when venturing into a new industry. The tech giant enters a new market after it has a product with innovative categories, for example it was not the first to make a smartphone but the first to have redefined the idea of smartphones.
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Tesla Motors Inc. and General Motors Co. both are pitching for a 2017 release of their electric cars. The target electric vehicle would cost only $40000 and be able to go for more than 200 miles without a single charge. The fact Tesla has been successful in breaching the electric car production barrier is testament the venture is not extremely impossible. However some technical leaps are difficult to be incorporated in the cars, the very effort the Apple lab in Silicon Valley is working upon.
The Apple car development team already has 200 employees and more technical experts were previously being recruited in the past months, as the company desired to hire out specialists in robotics and batteries technology. However the project is not rock solid and may even be abandoned if the executives are not happy with the progress or the end result. No wonder the entire operation is being carried out secretly.
Last year Apple had an $18 billion recorded profit in the fourth quarter, thus Apple had $178 billion in cash and only a few avenues to spend it on. Even though stakeholders may be pressuring for profits the CEO Tim Cook approved a $6.04 billion in research and development in 2014.
A car is a very complex technological machine and if it may take makers even up to 10 years if they start the production from scratch, according to Dennis Virag, the President of Automotive Consulting Group.
Recently the battery makers A123 SYSTEMS LLC filed a lawsuit against Apple, stating the company was aggressively poaching its employees after Apple hired 5 of its previous employees. The lawsuit states Apple has also tried to hire battery experts from LG, Samsung Co., Panasonic Corp., Toshiba Corp. and Johnson Inc. the hiring controversy began with the installation of Mujeeb Ijaz who founded A123’s Venture Technologies division and was a former Ford engineer.
Elon Musk the Tesla CEO recently said that Apple was looking for hiring its workers, offering them a signing bonus of $250000 along with a 60% salary increase. All of these latest developments indicate towards Apple’s efforts to create an electric car as soon as possible.