Apple hits record high on report that it's targeting a 2025 rollout of an autonomous electric vehicle

• Apple stock jumped 3% to record highs on Thursday after a Bloomberg report said the company will release a car in 2025.
• Since at least 2014, Apple has been rumored to be working on a vehicle, codenamed Project Titan.
• According to Bloomberg, Apple's car will be fully autonomous and electric when it's released.

Apple stock surged 3% to a record high and eclipsed Microsoft in market cap on Thursday after Bloomberg reported that the iPhone maker is accelerating its development of an electric car that is fully autonomous.

The most valuable company in the world has been rumored to be internally developing a vehicle under the codename "Project Titan" since at least 2014, though the company has stayed mum on its apparent plans.

Under the leadership of Apple Watch software executive Kevin Lynch, the company has refocused its car project towards a fully autonomous electric vehicle rather than one that offers adaptive steering controls like lane assist, according to Bloomberg, citing people familiar with the matter.

Apple is targeting a launch of its electric car in 2025, while engineers at the company had been planning for a five- to seven-year launch timeline earlier this year.

"But the timing is fluid, and hitting that 2025 target is dependent on the company's ability to complete the self-driving system," the report said.

Apple is exploring various designs for its car project, including one that would have no steering wheel or brake and gas pedals, Bloomberg reported, adding that Apple has reached a key milestone with progress on chip design and updated sensors for the self-driving system, along with the core processor that will power the vehicle.

Dan Ives of Wedbush said in a Thursday note that Apple's car is inevitable, adding that Apple partnering with an auto manufacturer is likely still in the cards.

"We continue to believe it's a matter of when, not if, Apple enters the EV race and this will add another $30+ per share of TAM to the Apple growth story over the next few years," Ives said.

Apple has a 60% to 65% chance of launching a standalone car by 2025, he said, rating Apple stock at Outperform with a $185 price target. Shares are up 19% year-to-date.