Apple has reportedly cancelled its plans to build electric vehicles (EV) after a decade of speculation about the project. The company, which has never publicly acknowledged the project, had a team of around two thousand people working on it. According to Bloomberg News, many of these employees will now be transferred to Apple’s artificial intelligence (AI) division. Apple has not yet responded to requests for comment.
The Apple car project, known internally as the Special Projects Group under CEO Tim Cook’s Project Titan, involved significant investment in research and development. Initially, the company was rumored to be working on a fully autonomous vehicle without a steering wheel and pedals. However, the team was still years away from producing a vehicle.
Industry experts have praised Apple’s decision to shift focus to AI. Ray Wang, founder and CEO of Constellation Research, called it a “smart and long-awaited decision.” He emphasized that the market demand for EVs is not as strong as for AI.
What Now From Apple
Apple has been exploring new opportunities beyond its flagship products, such as the recently launched Vision Pro virtual reality headset. The decision to cancel the EV project aligns with the growing market for AI in consumer electronics. Research firm Counterpoint predicts that shipments of generative AI smartphones will exceed 100 million units in 2024 and could reach over 500 million by 2027.
The slowdown in demand for EVs, coupled with high borrowing costs, has made the market increasingly competitive. Major players like Ford and General Motors have postponed their plans to expand EV production. Electric truck maker Rivian recently announced job cuts and no growth in production for this year. Even Tesla, led by Elon Musk, has faced challenges and warned of weaker sales growth in 2023.
In response to the news about Apple’s project cancellation, Musk took to social media with emojis of a salute and a cigarette.
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