Apple has reportedly decided to abandon its electric vehicle (EV) project, which has been under development for nearly a decade. The company, known for its iPhone and other consumer electronics, had never publicly acknowledged the project, but it was rumored to involve a team of approximately two thousand employees.
According to Bloomberg News, many employees from the EV project will now be reassigned to Apple's artificial intelligence (AI) division. The EV project team, known internally as the Special Projects Group under CEO Tim Cook's Project Titan, had initially focused on developing a fully autonomous vehicle without a steering wheel or pedals, investing billions of dollars in research and development.
The decision to halt the EV project comes amid a challenging landscape for the automotive industry. Demand for EVs has slowed, borrowing costs remain high, and competition among major players intensifies. Both Ford and General Motors in the US have delayed plans to expand EV production, and electric truck maker Rivian recently announced workforce reductions and projected no growth in production for the year. Even Tesla, led by Elon Musk, has faced challenges, including weaker sales growth projections for the year compared to 2023. The company has responded by reducing prices in key markets globally, facing tough competition, particularly from Chinese rivals like BYD.
Apple's exploration of opportunities beyond its traditional products, such as the Vision Pro virtual reality headset, reflects the company's shift towards AI. The market for AI in consumer electronics is experiencing significant growth, according to research firm Counterpoint. In the meantime, the automotive industry faces an uncertain future with the decline in EV demand.