For a couple of years, there has been a lot of speculation that Apple was secretly working on an electric car. The effort reportedly is known as “Project Titan” and is part of a broader trend in which technology companies try to develop self-driving vehicles.
But now, according to Bloomberg, Apple is scaling back on the project and is no longer focusing on developing a car of its own. Instead, it’s focusing on the technology needed to build partnerships with existing carmakers. This decision was reportedly made after months of disagreements, leadership instability, and supply-chain challenges.
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Investors who had been excited by the prospect of a self-driving Apple car may be disappointed. However, there’s still a stock related to autonomous vehicles that may be worth your attention.
That company is Tesla (TSLA) . The Palo Alto, Calif.-based electric car maker generated lots of headlines last week with its announcement that every car it will make contain have the hardware necessary for autonomous driving. The company said it will take some time, however, to validate the required software and receive regulatory approval for Tesla owners can let their cars do the driving.
Founded in 2003, Tesla is young for a U.S. automaker. Even so, it has managed to create a market for its signature electric vehicles at a rapid pace, and it looks set to march ahead with its plans in the years to come.
The stock has been under pressure this year, however, and is down 17% so far in 2016.
Tesla shares have come under pressure because of multiple concerns. They include worries about the company’s planned acquisition of SolarCity (SCTY) , about its need for capital (Oppenheimer analysts estimate a combined Tesla-Solar City will need to finance about $12.5 billion in capital expenditures by the end of 2018, according to Barron’s.), about its lack of profits, about self-driving car accidents (in the U.S. and Germany) and about car-building capacity at its Fremont, Calif. factory.