Apple has decided to cease its decade-long pursuit of developing an electric car, according to sources familiar with the matter. This move marks the conclusion of one of the most ambitious endeavors in the company’s history, as reported by Bloomberg.
The decision, which was internally communicated on Tuesday, came as a surprise to nearly 2,000 employees dedicated to the project, as per insiders who chose to remain anonymous due to the non-public nature of the announcement. Apple has never officially acknowledged its work on an electric car. Chief Operating Officer Jeff Williams and Vice President Kevin Lynch conveyed the decision, informing the team, known as the Special Projects Group (SPG), that the project will gradually wind down. Many employees from the SPG will transition to Apple’s artificial intelligence division, led by executive John Giannandrea, where they will focus on generative AI projects, a priority for the company. The move may result in layoffs, though the exact number is uncertain. Some investors reacted positively to the news, with Apple’s stock experiencing a slight increase following the announcement.
Tesla CEO Elon Musk also commended the decision, expressing his approval on social media. For Apple, the decision to terminate the project signifies a significant setback, as it brings to a close a multibillion-dollar initiative aimed at venturing into a new industry. The company embarked on the car project around 2014, envisioning a fully autonomous electric vehicle with luxurious features. However, the endeavor faced challenges from the outset, leading to changes in leadership and strategy over the years.
The final decision to discontinue the project was made by Apple’s top executives in recent weeks, following reports that the project was at a critical juncture. The most recent plan considered delaying the car’s release until 2028 and scaling back self-driving capabilities.
Concerns over profitability and escalating costs prompted the decision. Despite heavy investments in research and development, Apple’s board was apprehensive about the project’s potential returns. The company remains committed to innovation, as evidenced by recent ventures such as the Vision Pro headset, its first new product category in nearly a decade.