The project, based out of Apple's Cupertino headquarters, is sizeable, according to the Wall Street Journal, indicating that the company is serious.
The newspaper reported that Apple's senior management has flown to Austria to meet with high-end car makers, including Magna Steyr.
It is possible that the project will not become a commercial reality, but Apple already has the supply chain management, sales and technical might to explore making an electric car.
According to Bloomberg, electric car pioneer Tesla has hired at least 150 Apple employees over time, more than any other company.
Apple's head of marketing, Phil Schiller, said during a court testimony in 2012 that the company had already floated the option of making a car after the success of the iPod. (It went on to create the iPhone instead).
While Silicon Valley rival Google has made progress in building driverless cars, Apple is reportedly not considering self-driving vehicles, according to the Wall Street Journal.