Apple Halts Electric Car Project, Shifts Focus to AI
Despite early optimism and reports suggesting a potential vehicle release by 2024 or 2025, progress on the project had been inconsistent.
In a surprising move, Apple has reportedly terminated its electric car project, according to news report by Bloomberg. The decision comes a decade after the tech giant initiated the ambitious endeavor, signaling a strategic pivot towards other ventures. Despite the cancellation, Apple's shares experienced a slight uptick of 0.7% in afternoon trading, reflecting investor confidence in the company's adaptability.
Bloomberg News first reported that several employees previously engaged in the electric car project will now transition to Apple's artificial intelligence (AI) division. This reallocation of resources underscores Apple's commitment to bolstering its AI capabilities, an area where it has lagged behind competitors like Alphabet and Microsoft.
Project Titan, as Apple's electric car initiative was internally known, commenced a decade ago amidst growing interest in self-driving vehicles. Despite early optimism and reports suggesting a potential vehicle release by 2024 or 2025, progress on the project had been inconsistent. Apple had previously revamped its software approach, leading to layoffs of 190 workers from the group in 2019.
The move marks the end of one of Apple's most high-profile endeavors, aimed at challenging Tesla and other automakers in the electric vehicle market. Despite years of investment and effort, the project encountered challenges including leadership changes, technological hurdles, and shifting priorities. Apple's operating chief Jeff Williams and AI head John Giannandrea informed Titan employees of the decision, indicating a shift in focus towards AI projects.
Ben Bajarin, CEO of consulting firm Creative Strategies, highlighted the potential impact of this shift, suggesting that increased emphasis on AI could instill optimism among investors regarding Apple's future endeavors. While Apple has made limited strides in AI compared to its counterparts, this strategic move could position the company for greater competitiveness in the AI landscape.
The concept of Apple's electric car also evolved over time, transitioning from a radical, steering-wheel-free autonomous vehicle to a more conventional design with advanced driver-assistance features. While the termination of the project marks the end of an era for Apple's automotive ambitions, it underscores the company's strategic focus on AI and other emerging technologies.
