Apple Abandons Electric Car Project, Shifts Focus to Artificial Intelligence (AI)
In a recent development, a source familiar with the matter revealed to Reuters on Tuesday that Apple has decided to cancel its electric car project, marking the end of a decade-long effort initiated by the iPhone maker. Shares of the company experienced a 0.7% increase in afternoon trading, rebounding from earlier losses in the trading day.
According to Bloomberg News, several employees previously dedicated to the electric car project will be reassigned to Apple’s artificial intelligence (AI) division. Ben Bajarin, CEO of consulting firm Creative Strategies, commented on the potential shift, stating, “If it is true, Apple will put more focus on GenAI, and that should give investors more optimism about the company’s efforts and ability to compete at a platform level on AI.”
Unlike some tech giants such as Alphabet and Microsoft, which have taken early strides in incorporating AI technology, Apple has been relatively reserved in this domain. The cancellation of the electric car project suggests a strategic redirection towards bolstering efforts in AI development.
Apple, known for its discretion, declined to comment on the matter.
The decision to abandon the electric car project aligns with a broader industry trend. High interest rates aimed at curbing inflation have dampened consumer sentiment, leading to a slowdown in demand for electric vehicles. This has prompted automakers, including Tesla, to reevaluate their investments and shift focus from fully battery-powered cars to hybrids.
Project Titan, as Apple’s car initiative was internally known, commenced a decade ago amid a surge of interest in self-driving vehicles in Silicon Valley. While initial reports in 2020 hinted at a potential vehicle release by 2024 or 2025, progress had been inconsistent, with disruptions from the COVID-19 pandemic further impacting the global automotive industry.
Apple had previously laid off 190 workers from the Project Titan group in 2019 after restructuring its software approach. Notably, the design of the concept car underwent changes, evolving from a radical, steering-wheel-free autonomous vehicle to a more conventional car with advanced driver-assistance features.
The shift in focus from electric cars to AI underscores Apple’s adaptive approach to emerging technologies and market dynamics.
