Hundreds of Apple employees have been rumoured to be working on an electric car under the code name “Project Titan”.
But the company has now reorganised the project and decided to prioritise the development of an autonomous driving system.
The project was being led by Steve Zadesky, vice president of product design, but he has left the company, causing some disruption to Apple's plans.
He was replaced by Apple veteran Bob Mansfield, who has taken over the project.
The company has apparently not ruled out building its own car in the future and there is a possibility of partnering with a car manufacturing company in years to come.
Apple CEO Tim Cook has been questioned about Apple's plans for a possible Apple Car several times, and has remained tight-lipped.
However, he did hint earlier this week that new projects are under way.
He said: “The products that are in R&D, there is quite a bit of investment in there for products and services that are not currently shipping or derivations of what is currently shipping. There’s a lot of stuff that we’re doing beyond the current products.”
Apple is not the only company focusing on self-drive technology.
BMW is collaborating with two other firms to get self-driving cars on to the road.
The German carmaker says it wants to get the automated vehicles into production within five years.
It is working to develop the technology in collaboration with Intel - the computer chip company - and technology firm Mobileye.
In a joint statement, the companies said they believe self-driving vehicle technology will make road travel both easier and safer for tomorrow’s motorists.
The automaker has also said drivers could soon be able to summon fully autonomous Mini cars to pick them up from any location at any time under futuristic new plans.
But don’t hold your breath - the plan is only expected to come to fruition over the next “two or three decades”.