Apple halts electric car project
Apple has abandoned its electric car project, a decade after the tech giant initiated the effort. The company's shares rose by 0.7% in afternoon trading, recovering some of the day's earlier losses.
Bloomberg News, which first reported the news, stated that several team members from the electric car project would be reassigned to Apple's artificial intelligence (AI) division. "If this is true, it signals Apple's increased focus on GenAI, boosting investor confidence in the company's ability to compete in AI at a platform level," said Ben Bajarin, CEO of Creative Strategies.
Unlike tech counterparts such as Alphabet and Microsoft, which have pioneered AI integration, Apple has been more reserved in its AI ventures. The company declined to comment on the report.
Rising interest rates aimed at curbing inflation have dampened consumer enthusiasm, leading to decreased demand for high-end electric vehicles. This has forced the industry to slash jobs and scale back production. Major automakers, including EV leader Tesla, have curtailed investments, with some redirecting their focus towards hybrid models rather than solely battery-powered vehicles.
Apple's car initiative, known internally as Project Titan, began ten years ago amid a surge of interest in autonomous driving in Silicon Valley. Reuters, in 2020, reported that Apple was eyeing a vehicle launch by 2024 or 2025. However, the project encountered numerous setbacks, even before the COVID-19 pandemic upended the global automotive sector. In 2019, Apple dismissed 190 employees from the project team following a shift in its software strategy.
Originally envisioned as a groundbreaking, steering-wheel-less autonomous vehicle, the concept car's design later shifted towards a more traditional model equipped with advanced driver-assistance features.
