Apple Abandons Electric Car Project, Shifts Focus to AI, Source Says
Apple has reportedly canceled its electric car project after a decade of development. Employees from the project will be shifted to Apple's AI division. The decision reflects Apple's renewed focus on AI and its potential for future growth.
In a surprising turn of events, Apple has reportedly canceled its long-awaited electric car project, according to a source familiar with the matter. The decision comes a decade after the tech giant first embarked on the ambitious venture. While shares of the company initially dipped, they have since rebounded, showing a 0.7% increase in afternoon trading.
According to Bloomberg News, several employees who were previously working on the electric car project will now be reassigned to Apple's artificial intelligence (AI) division. This strategic move aims to bolster the company's efforts in the rapidly evolving field of AI. Ben Bajarin, the CEO of consulting firm Creative Strategies, believes that this shift will bring renewed optimism among investors regarding Apple's ability to compete on an AI platform level.
Unlike its tech counterparts such as Alphabet and Microsoft, Apple has been relatively reserved in its foray into AI. However, this recent move suggests a change in strategy as the company recognizes the importance of AI in shaping the future of technology.
Apple's decision to abandon its electric car project may be influenced by the current market conditions. High interest rates aimed at curbing inflation have dampened consumer sentiment and led to a slowdown in demand for electric vehicles. As a result, the industry has witnessed job cuts and reduced production. Even major automakers like Tesla have scaled back their investments in fully battery-powered cars, opting to focus on hybrid models instead.
The project, internally known as Project Titan, was initiated by Apple a decade ago amidst the growing interest in self-driving vehicles in Silicon Valley. In 2020, there were reports suggesting that Apple was planning to release its own vehicle by 2024 or 2025. However, progress has been inconsistent, and the COVID-19 pandemic further disrupted the global automotive industry.
Apple has faced its fair share of challenges along the way. In 2019, the company laid off 190 workers from the project group after reevaluating its software approach. Additionally, the design of the concept car underwent significant changes, shifting from a radical, steering-wheel-free autonomous vehicle to a more conventional car with advanced driver-assistance features.
As of now, Apple has declined to comment on the cancellation of its electric car project. However, the company's renewed focus on AI suggests a strategic shift in its priorities. With the reassignment of employees and a growing emphasis on AI, Apple aims to position itself as a formidable player in the evolving landscape of technology.
Apple has reportedly canceled its electric car project after a decade of development.
Employees from the project will be shifted to Apple's AI division.
The decision reflects Apple's renewed focus on AI and its potential for future growth.
Source: REUTERS