Apple Inc. (NASDAQ:AAPL) has fought battles with the biggest companies in the world and now it looks like they are going for another one, Tesla. The smartphone maker is looking to build its own electric car and bring it the marketplace by 2020. The company has a reputation for making all kinds of items better than the original that dates back to 1986 when they stole the spotlight from Microsoft with their Macintosh release. According to Bloomberg, the company intends to have the car in full production on assembly lines by 2020.
Fast To Production
It generally takes an automaker 5-7 years to design a new vehicle but Apple believes it can do so in less than 6. The company definitely has the cash and the resources to make a strong effort to meet the aggressive deadline. At first glance this may seem out of Apples element but the technology and advancement needed to pull this off is actually just like them. Apple Inc. (NASDAQ:AAPL) has not confirmed nor denied the Bloomberg report. A car assembly plant would cost about $1 billion dollars to set up but that won’t worry the Giant as it has over $178 billion in cash on hand.
Apple Inc. (NASDAQ:AAPL) recently posted a profit of $18 billion the past quarter and has the huge war chest to fund a project like this. This fits Apples style as they were not the first to make smart phones or digital players but once they entered the markets they became the dominant force. Tesla showed the blueprint for entering the auto making industry and Apple will surely be aware of that. Apple has run many secret projects and they may be quiet about this one in the event it does not progress the way they want and they abandon it altogether.
The stock is all time highs and seems to be starting to form a new base at its current level. Very few stocks have exhibited the technical strength of Apple Inc. (NASDAQ:AAPL) and it has proven not only profitable but resilient.