Apple has reportedly scrapped its plans to develop electric vehicles (EV) after a decade of speculation surrounding the project.
The tech giant has never officially acknowledged this venture, which involved approximately two thousand employees.
According to Bloomberg News, many team members will be transferred to Apple’s artificial intelligence (AI) division.
The Apple car initiative, internally known as the Special Projects Group under CEO Tim Cook’s Project Titan, incurred significant research and development expenditures.
Initially, rumors suggested Apple was working on a fully autonomous vehicle without traditional controls like a steering wheel and pedals.
However, the project was believed to be years away from producing a viable product.
Commenting on the decision, Ray Wang, CEO of Constellation Research, described it as “smart” and “long awaited,” citing the growing demand for AI technology compared to EVs.
Apple has been diversifying its portfolio beyond iPhones and computers, evident in its recent launch of the Vision Pro virtual reality headset.
Counterpoint, a research firm, highlighted the burgeoning market for AI in consumer electronics, with shipments of generative AI smartphones projected to exceed 100 million units in 2024, potentially reaching over 500 million by 2027.
The EV market has faced challenges, including high borrowing costs and increased competition. Major players like Ford and General Motors have delayed EV production expansion plans, while electric truck manufacturer Rivian announced job cuts and stagnant production growth.
Tesla, led by Elon Musk, has also experienced sales growth concerns and intensified competition, particularly from Chinese rivals like BYD.
Musk responded to reports of Apple’s project discontinuation on the social media platform X with emojis depicting a salute and a cigarette.
Source-BBC
