Will Apple iCar be a driving force to compete with Google and Tesla?

APPLE is reportedly gearing up work on an iCar and analysts expect the company is planning something very different than its competitors.

Apple AirPlay on a Pioneer AVIC-F60DAB car head-unit

APPLE CEO Tim Cook, who is about to roll out the company’s first piece of wearable tech with a watch, may be looking to get a lot more mileage out of another new gadget: an iCar.

Apple has built up a roster of engineers, recruiters and designers who have previously worked at Tesla Motors and could even be in the process of building its own car, The New York Post reports.

The ramp-up, along with an increase in research and development spending, has revved up speculation that Apple could soon compete with Elon Musk’s Tesla — or even Google’s self-driving cars, according to the report in the Financial Times, which talked to analysts closely watching the company.

Thinking outside the box ... Apple CEO Tim Cook. Picture: AP

“If Apple’s building a car, we expect they would be doing something very different from traditional car manufacturers,” Brian Colello, an analyst at Morningstar, told the FT. “We don’t expect Apple to get involved unless they can truly change the game.”

There is also chatter that Apple, which has $US178 billion ($230 billion) in cash on its balance sheet, may be eyeing an investment in Tesla, which has a market cap of $US25 billion.

“[Tesla’s] not profitable whatsoever, but that doesn’t mean [Apple] shouldn’t pursue them,” Andrew Zamfotis, an analyst at EVA Dimensions, told The Post. “Nothing’s going to be profitable on day one.”

Market leaders ... Tesla is so far leading the way in electric cars. Picture: Supplied

Apple could also be developing longer-lasting batteries with the former Tesla engineers, Mr Colello said.

Separately, Apple continued to broaden out in other areas, with US President Barack Obama announcing that the government will begin accepting the Apple Pay mobile payment system for certain transactions, like entrance to national parks.

An Apple spokeswoman didn’t return a call seeking comment.