The maker of the iPhone and iPad has a team of several hundred people working on a minivan-style car that could incorporate Apple's array of technology products.
The Wall Street Journal quoted people familiar with the matter in a story Friday on the car project nicknamed "Titan."
If the vehicle moves forward it would put Apple in competition with other electric car makers including Tesla and General Motors.
The newspaper said the company is exploring several different technology developments and could decide not to proceed with the car.
The tech giant has made gains in the smartphone industry and has developed a highly-anticipated smartwatch.
The company's executives say Apple continues to look for ways to expand its global footprint and technology offerings.