Apple obviously working on a car, says Elon Musk

Tesla's chief executive, Elon Musk, says it's "obvious" Apple is building an electric car, according to a report by the BBC.

While Apple has never made any formal announcement, there's been quite a few clues pointing to an electric car.

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It's hard to hide something if you hire more than one thousand engineers to do it, Musk told the BBC.

One clue: The domain registry site WHOIS lists Apple as the owner of the online domain name www.Apple.Car.

Read More Apple Car rumors flurry after new domain registration

Another: In September, in a statement to CNBC, the California Department of Motor Vehicles confirmed a meeting with Apple to review autonomous vehicle regulations.

Musk says he doesn't see a potential Apple car as a threat to Tesla, but rather an opportunity to expand the nascent industry. He sees a future where all cars will be electric and autonomous.

Read MoreApple meets with self-driving car regulators: Report

As of now, Tesla only produces luxury electric model cars, and its founder said unless there's an affordable car, Tesla will only have a small impact on the world, according to the BBC report.

Apple did not immediately respond to a request for comment from CNBC.