Please ensure Javascript is enabled for purposes of website accessibility

3 Hurdles for Apple Inc's Electric Car

By Chris Neiger - Sep 28, 2015 at 5:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Apple may be working on its own car, but it won't come without some major challenges.

Rumors of Apple's (AAPL 4.08%) alleged electric car are on the rise, most recently with The Wall Street Journal reporting a launch date of 2019. But the road to an Apple Car release may be a long and arduous one. 

While Apple has enjoyed high margins on its devices, the automotive industry is not so lucrative. Even luxury automaker Porsche's operating profit percentages fall far below Apple's. And then there's the long product cycle development of autos, the strict government safety regulations, and the punishingly slow battery technology improvements. 

Of course, Apple and its $203 billion in cash could overcome these hurdles, but at this point, it's anything but proven that the iPhone maker can make it in the automotive business. Click on the video below to find out more. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
$149.64 (4.08%) $5.86
General Motors Company Stock Quote
General Motors Company
$38.57 (3.07%) $1.15
Bayerische Motoren Werke Aktiengesellschaft Stock Quote
Bayerische Motoren Werke Aktiengesellschaft
$83.83 (0.76%) $0.64

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.