Google Inc. (NASDAQ: GOOG) has moved far along as it tries to build a driverless car. Tesla Motors Inc. (NASDAQ: TSLA) has had success in producing a commercially successful electric one. The Wall Street Journal reports that even Apple Inc. (NASDAQ: AAPL) has joined the race for a next-generation car. Exxon Mobil Corp. (NYSE: XOM) might have to join the movement to hedge its future earnings as an oil giant.

The Wall Street Journal picked up a rumor that:

The Cupertino, Calif., company has several hundred employees working secretly toward creating an Apple-branded electric vehicle, according to people familiar with the matter. The project, code-named “Titan,” initially is working on the design of a vehicle that resembles a minivan, one of the people said.

Since autos are not part of Apple’s core business of building consumer electronics devices, operating systems, and distribution of media, what is the purpose of being in the business? Perhaps Apple believes cars can be an extension of its hardware and iOS.

Among the companies most threatened by the rise of all things electric is Exxon Mobil, America’s largest oil company. It needs hedges against the falling use of fossil fuel, not unlike the mechanisms that airlines use to hedge fuel prices to maintain profits. Exxon needs to go electric so that it can participate in the rising success of “electrics.”

ALSO READ: Tesla Is January’s Best-Selling All-Electric Vehicle

Exxon already has moved into the business of helping people drive with more fuel efficiency. It supports hydrogen fuel cell vehicles and has bumpers and fuel tanks made from Exxon-based plastics. However, none of these goes very far in building cars that can travel hundreds of miles without use of any gasoline at all. The number of cars that use this sort of technology now may be modest. However, all the world’s major car manufacturers have aspirations in the electric car market, and they have the balance sheets, marketing capacity and dealer networks to be aggressive as participants in the new world of car propulsion.

How much revenue does Exxon risk if the march toward electric vehicles persists? It is hard to calculate, since so much oil gets used for purposes like home heating and oil-based industrial products. Exxon had revenue of $87 billion in the fourth quarter and net income of $6.6 billion. Over the decades, the demand for all the oil that creates that revenue probably will lessen.

The electronic car business likely will produce billions of dollars in sales a year, but probably not for decades. Exxon needs to be in the business as its oil sales fade.

Ha ha.

ALSO READ: Running a Tesla With an Apple Watch

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.