Update: Tesla's Elon Musk has said that it is '"very unlikely'" that Apple will buy Tesla Motors in the near future.
"We need to stay super focused on creating a compelling mass-market electric car," Musk told Bloomberg in a recent interview. "I'd be very concerned in any kind of acquisition scenario, whoever it is, that we would become distracted from that task, which has always been the driving goal of Tesla."
Original story: Apple is best known for its iPod, iPhone and iPad devices but we could one day see a car from the tech giant on the Auto Express homepage.
According to a report in the San Francisco Chronicle, Apple's mergers and acquisition chief, Adrian Perica (plus Apple CEO Tim Cook) met with Tesla CEO Elon Musk last spring with a view to buying the electric car maker.
The meeting, which took place at Apple's Cupertino headquarters in California, was supposedly around the same time that industry analysts were suggesting Apple buy Tesla. It is also rumoured that Apple is looking into medical technology in a bid to expand the business away from the technology market.
The report notes that the high-profile figures involved in the meeting suggests genuine intent to buy the electric car firm.
The Tesla Model S already features a large, tablet-like display which is the size of two iPads. It can be used to browse the web, set up the infotainment or plot your route on the sat-nav. It's already a responsive and useful feature, but would surely benefit from a tie-up between these two companies.
The Apple iCar is something we've heard about before, with Apple's 'iOS in the Car' (otherwise known as iOSitC) software being leaked by a mobile app developer last month. The leaked video showed an iPhone hooked up to a separate window, presumably in a car - and the system has the backing of big name brands like BMW, Toyota and Ford.
The move towards buying a car manufacturer will be a step ahead of competitor Google, which is using its Android operating system to develop partnerships with companies like Honda, Hyundai and Vauxhall.