Apple Halts Development of Self-Driving Electric Car Project

Apple Halts Development of Self-Driving Electric Car Project

Apple Reportedly Cancels Electric Vehicle (EV) Plans After a Decade of Speculation

Apple Reportedly Shifts Focus from Electric Car Project to AI Division

Apple has silently abandoned its secretive electric vehicle project, which reportedly involved around two thousand employees, as per Bloomberg News.

Although Apple never officially acknowledged the project, insiders revealed that many of the team members will now be reassigned to the tech giant's artificial intelligence (AI) division. Despite numerous attempts, Apple declined to comment when approached by BBC for clarification.

Dubbed the Special Projects Group under CEO Tim Cook's Project Titan initiative, the team had been working on developing a fully autonomous vehicle, devoid of traditional driving controls like a steering wheel and pedals. However, despite investing billions in research and development, the project was still years away from fruition.

Industry expert Ray Wang, CEO of Silicon Valley consultancy Constellation Research, praised the decision, citing the burgeoning demand for AI over electric vehicles. He noted, "This is a smart and long-awaited decision.

Apple's strategic shift aligns with its broader exploration of innovative ventures beyond its core products like iPhones and computers. This includes the recent launch of the Vision Pro virtual reality headset.

According to research firm Counterpoint, the move also reflects the growing market potential for AI in consumer electronics. Ivan Lam, Counterpoint's senior analyst, projected a significant rise in shipments of generative AI smartphones, reaching over 100 million units in 2024 and potentially surpassing 500 million by 2027.

The decision to pivot away from electric vehicles comes amid a sluggish demand for EVs due to high borrowing costs, intensifying competition, and economic uncertainties. Major players like Ford and General Motors have scaled back their EV production plans, while electric truck manufacturer Rivian announced layoffs and stagnant production growth.

Even Tesla, led by Elon Musk, faces challenges, with weaker sales growth projected for this year and aggressive price cuts to stay competitive, particularly against Chinese rivals like BYD.