 "After investing billions and developing an EV for over a decade, Apple will finally be killing its plan for the Apple Car. The project currently employs over 2000 people. Most of these people will be reassigned to various AI projects, while some may be let go")
Apple has decided to halt its decade-long pursuit of developing an electric car, sources familiar with the matter revealed. This marks the end of one of the most ambitious endeavours in the company’s history, as per a report by Bloomberg.
The decision shared internally on Tuesday, came as a surprise to nearly 2,000 employees dedicated to the project, as per insiders who preferred to remain anonymous due to the non-public nature of the announcement. Apple has never formally acknowledged that they have been working on an electric car
Chief Operating Officer Jeff Williams and Vice President Kevin Lynch conveyed the decision, informing the team, known as the Special Projects Group (SPG), that the project will gradually wind down. Many employees from the SPG will transition to Apple’s artificial intelligence division, led by executive John Giannandrea, where they will focus on generative AI projects, a priority for the company.
The move may result in layoffs, though the exact number is uncertain. Some investors reacted positively to the news, with Apple’s stock experiencing a slight increase following the announcement.
Tesla CEO Elon Musk also applauded the decision, expressing his approval on social media.
For Apple, the decision to end the project signifies a significant setback, as it brings to a close a multibillion-dollar initiative that aimed to venture into a new industry. The company embarked on the car project around 2014, envisioning a fully autonomous electric vehicle with luxurious features. However, the endeavour faced challenges from the outset, leading to changes in leadership and strategy over the years.
The final decision to discontinue the project was made by Apple’s top executives in recent weeks, following reports that the project was at a critical juncture. The most recent plan considered delaying the car’s release until 2028 and scaling back self-driving capabilities.
Impact Shorts
View AllConcerns over profitability and escalating costs prompted the decision. Despite heavy investments in research and development, Apple’s board was apprehensive about the project’s potential returns. The company remains committed to innovation, as evidenced by recent ventures such as the Vision Pro headset, its first new product category in nearly a decade.
(With inputs from agencies)