Speaking exclusively to the BBC, Musk called Apple's car project an 'open secret' pointing out "It's pretty hard to hide something if you hire over a thousand engineers to do it,"
Musk, who founded and owns electric car company Tesla, believes that rather than be threatened by Apple's expansion it'll 'expand the industry'.
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Apple, despite remaining tight-lipped about the subject, has spent the last year hiring automotive experts, buying up car related domain names and even reportedly buying up new offices from which they can work away from prying eyes.
Apple's current involvement in the car industry is CarPlay - software which integrates the iPhone with a car.
While Musk won't speculate on whether Apple's car will be self-driving, he has predicted that a car that has to be driven will soon become a "strange anachronism".
Musk has been actively pushing his company Tesla to focus on creating a self-driving car with the flagship model now offering a range of road-legal features which allow the car to control itself.
The newest is called 'Summon' and allows a driver to remotely call the car to them, as long as they're on private property.
Tesla's flagship car the Model S is completely upgradeable allowing Tesla to add new features.
"This is the first baby step - ultimately you'll be able to summon the car from New York if you're living in LA, and it will drive across the country, charge itself at the various locations and come to you." said Musk.