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Is Apple Giving up on the Self-Driving Car?

There hasn’t been a whole lot of light shed on Apple’s (NASDAQ:AAPL) self-driving car technology. Will the company be like Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) and develop the self-driving car software and look to license it with other automakers? Or will Apple actually produce the vehicles itself?

According to reports, the company’s Project Titan eliminated dozens of positions and is looking to “reboot” the concept.

Apple is so secretive, it’s tough to have much insight into what the company is going to do, or what exactly it means by a reboot. According to the New York Times, the company is putting more emphasis on the self-driving technology (like Alphabet) and less emphasis on producing vehicles.

Several years ago, the Wall Street latched onto the concept that Apple would produce cars as its next growth catalyst, possibly in 2020.

Now the company is going through a reboot in H2 2016 and suddenly, that growth concept is being called into question.

So if Apple’s going to go down that path, why not buy Tesla Motors (NASDAQ:TSLA)?

Tesla is exactly what Apple would typically want in its own product: high industry margins, leading technical edge and extremely high quality.

Tesla possesses all of that and by working behind the scenes, Apple would be able to easily absorb the company’s current cash burn, benefit from its rapid scale in production and revenue growth, and eventually see some profit down the road.