Tokyo, Japan – Apple has announced the cancellation of its decade-long project to develop electric vehicles (EV), ending speculation about the tech giant’s foray into the automotive industry. The project, which involved approximately two thousand employees, was never officially acknowledged by Apple.
Instead of pursuing EVs, many team members will be reassigned to Apple’s artificial intelligence (AI) division, according to reports from Bloomberg News. This strategic shift indicates Apple’s focus on AI technologies as a key area of growth and innovation.
The project, known as the Special Projects Group within CEO Tim Cook’s Project Titan, was initially rumored to be working on a fully autonomous vehicle without traditional features like a steering wheel and pedals. Despite significant investment in research and development, the team was still years away from producing a market-ready vehicle.
Industry experts like Ray Wang, founder and CEO of Constellation Research, praised Apple’s decision to pivot away from EVs, citing a lack of market demand and the growing importance of AI technology. Wang emphasized that the competitive landscape for EVs has intensified, with major players like Ford and General Motors facing challenges in expanding production.
In recent months, the slowdown in EV demand due to high borrowing costs has led to a more cautious approach from automakers like Rivian, which recently announced workforce cuts and stagnant production forecasts. The electric vehicle market, led by companies like Tesla and Chinese rivals such as BYD, continues to face pricing pressures and increased competition globally.
As Apple shifts its focus to AI and away from EV development, the tech industry watches closely to see how the company’s strategic priorities evolve in response to changing market dynamics. The decision to reallocate resources reflects a broader trend in the automotive industry towards AI-driven innovations and the pursuit of sustainable, technology-driven solutions.