According to a source familiar with the matter, Apple has decided to halt work on its electric car project after a decade of development.
This decision marks the end of a plan that aimed to expand Apple into the automotive industry and potentially replicate the success of its iPhone.
The project had experienced challenges along the way and its termination aligns with a trend of global automakers reducing their investments in electric vehicles due to decreased demand.
Reportedly, some employees from the project will be reassigned to Apple’s artificial intelligence division, signaling a shift in focus for the company.
Apple chose not to provide a comment on the matter.
Ben Bajarin, CEO of consulting firm Creative Strategies, believes that Apple’s emphasis on AI through GenAI could inspire optimism among investors regarding the company’s competitiveness in the technology sector.
Despite tech giants like Alphabet and Microsoft leading the way in AI integration, Apple has been more reserved in adopting the technology, leading to concerns about its product development strategies.
This caution is evident in Apple’s modest share gain compared to its competitors, with Microsoft recently surpassing Apple as the world’s most valuable company.
Additionally, the electric vehicle market has experienced a slowdown in demand due to high interest rates, resulting in industry-wide job cuts and production reductions.