Apple cancels work on electric car: Report

Apple is reportedly ending its decade-long endeavor to produce its electric car, sources familiar with the matter informed Bloomberg. According to the Bloomberg report, nearly 2,000 employees working on the EV team known as the Special Projects Group were informed about the decision by Apple executives Jeff Williams and Kevin Lynch.

The report added that most of the employees who were part of the Special Projects Group will be shifted to Apple’s artificial intelligence division to concentrate on generative AI projects. 

For the past decade, Apple Inc. has been working on a secret project of the Apple Car, dedicating extensive resources and manpower to the development of its much-anticipated Apple Car project. This endeavor, as detailed in a comprehensive report by Bloomberg, represented a significant investment for Apple, both in terms of capital and intellectual engagement, with the company pouring billions of dollars into research and development efforts. Initially, Apple’s ambitions in the automotive sector were centered around the creation of an electric vehicle, a goal that later evolved to encompass the development of cutting-edge technology aimed at powering such vehicles. This shift in focus was reflective of the company’s adaptive strategy in navigating the complexities and challenges inherent in pioneering autonomous driving solutions.

Recently, Apple announced that its car’s launch date has been delayed to 2028 due to production challenges. Last month, the company reportedly shifted its focus away from the initial plan of developing a fully autonomous vehicle towards a less ambitious design with limited self-driving features.

Bloomberg reported that before discontinuing the project, Apple executives raised concerns about the electric car’s profitability. Apple planned to price the vehicle at approximately $100,000 after spending hundreds of millions of dollars on the project annually.

The implications of Apple’s strategic shift are far-reaching, particularly in the context of its upcoming products. The iPhone 16 and the next iteration of its operating system, iOS 18, are reportedly set to feature advanced AI capabilities, underscoring the company’s commitment to integrating AI technologies into its consumer offerings. This move reflects Apple’s ambition to redefine user experiences through AI, enhancing the functionality and intelligence of its devices. As the tech community eagerly anticipates further details on Apple’s AI initiatives, it is clear that the company is poised to embark on a new chapter in its technological journey, with a renewed emphasis on leveraging AI to maintain its position as a leader in innovation.