Rumors that Apple could be working on newcar-related technology have picked up steam in the past few weeks. Now, a new report claims the Cupertino company is in fact working on an actual vehicle, though the project may still be in the very early stages of development.

The Mac Observer claims that Apple is poaching Tesla employees with direct car experience in an effort to take on the electric vehicle-maker. A second source tells the site that Apple is almost definitely working on the fabled “iCar,” putting the odds at 80 percent. The news follows earlier reports that Cupertino’s mystery project “will give Tesla a run for its money.”

Rumors of an Apple car have been floating around for years, and Steve Jobs even dreamed of releasing an iCar. Now, that vision may live on in the same secretive offices where revolutionary products like the iPhone and iPad were original developed. Mac Observer also notes that even if Apple doesn’t have experience with cars it knows its way around software, giving the company a big advantage over much of the auto industry.

Of course, even if there is a team at Cupertino plugging away at an Apple Car that doesn’t mean it will ever see the light of day, but based on recent reports we may be closer to seeing an Apple-branded vehicle than ever before.

Screen shot: