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According to reports, Apple has decided to cancel its plans for developing electric vehicles (EV) approximately ten years after rumors first emerged about the company’s involvement in the project.
Although Apple has never publicly acknowledged the initiative, it is believed to have involved around two thousand employees. Bloomberg News has reported that many of these employees will be reassigned to Apple’s artificial intelligence (AI) division.
When contacted for a comment, Apple did not immediately respond to the BBC’s request.
The Apple car team, known as the Special Projects Group within CEO Tim Cook’s Project Titan, has been the subject of significant investment in research and development over the years. Initially, the company was rumored to be developing a fully autonomous vehicle without a steering wheel and pedals. However, the team was still believed to be years away from producing a viable vehicle.
“This is a smart and long-awaited decision,” commented Ray Wang, founder and CEO of Silicon Valley-based consultancy Constellation Research, speaking to the BBC. “The market demand for EVs is not there, and AI is where all the action is,” he added.
Apple has been exploring opportunities beyond its iPhone and computer products, such as the recently launched Vision Pro virtual reality headset.
Research firm Counterpoint has highlighted the significant growth of the AI market in consumer electronics, which likely played a role in Apple’s decision. Counterpoint’s senior analyst, Ivan Lam, noted that preliminary data suggests shipments of generative AI smartphones will exceed 100 million units in 2024, with an estimated figure of over 500 million units by 2027.
The demand for EVs has experienced a slowdown in recent months due to high borrowing costs, intensifying competition among major players vying for customers.
In the electric vehicle sector, US motor industry giants Ford and General Motors have postponed their plans to expand EV production. Additionally, electric truck manufacturer Rivian recently announced a 10% reduction in its workforce and expressed expectations of no production growth this year.
Tesla, led by billionaire Elon Musk, has also faced challenges. The company warned of weaker sales growth in 2024 compared to the previous year. As a result, Tesla has implemented price cuts in key markets worldwide, including Europe and China, in response to stiff competition from Chinese rivals like BYD.
In response to the report of Apple winding down its car project, Musk took to the social media platform X (formerly known as Twitter), using emojis of a salute and a cigarette.
