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Apple plans to develop self-driving cars by 2024 with next-gen battery technology. Will Apple’s new car launch give tough competition to Tesla and other automakers?
After leading the consumer electronics market for decades, Apple is now planning to add autonomous vehicles to its portfolio. According to a report by ReutersOpens a new window , Apple plans to build and produce self-driving cars with its own advanced breakthrough battery technology by 2024. The tech giant’s interest in developing a consumer-focused passenger vehicle will directly compete with Tesla, General Motors, and Nissan.
Apple’s interest in developing autonomous vehicles (known as Project Titan) goes back to 2014. However, the company shelved its plans in 2016 and shifted its focus on developing self-driving software for car manufacturers. However, Apple’s new interest in the car business has shaken the stock market and the industry.Â
Apple’s market value grew by more than $102 billion at intraday highsOpens a new window . However, Jim Cramer, founder of The Street, warned users to be careful while investing in Apple’s stock.
it makes sense that Apple might want to build a car if it thinks that it can best everyone and please customers but otherwise don’t buy the stock on this. Buy on what we know.. Own it don’t trade it
— Jim Cramer (@jimcramer) December 22, 2020Opens a new window
Also Read: Elon Musk Rolls Out Tesla’s Full Self-Driving Beta, Experts Sound Caution
The company plans to implement the monocell design to create more space and pack more active material inside the battery packs. Apple is exploring lithium iron phosphate (LFP) battery chemistry, which is safer and less likely to overheat than other lithium-ion batteries. The next-gen battery technology will reduce battery cost, according to Reuters. Besides, Apple may rely on third parties for LiDAR sensors or reuse its own LiDAR sensors created for iPhone 12 Pro and iPad Pro models.
Apple analyst Ming-Chi Kuo anticipatesOpens a new window that the Apple car will be the next star product with better integration of hardware, software, and services than existing competitors in the automotive market.Â
According to sources, it is possible that Apple’s production may be delayed even beyond 2025 due to the pandemic and the company may end up reducing the scope of its ambitious project. Apple might not build its own Apple-branded car and instead partner with existing automakers to integrate its autonomous driving system into their vehicles.Â
Even though Apple has abundant financial resources, its desire to build a brand new vehicle from scratch could pose monumental manufacturing and supply chain challenges. If Apple’s Project Titan turns successful, it will need a manufacturing partner to build the vehicles. Moreover, Apple might face tough competition in the autonomous vehicle market, which is already crowded by established players like Tesla and is likely to get populated with newer players by 2024.
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