Apple Ends Decade-Long Electric Car Project, Shifts Focus to AI Initiatives

Apple Inc. has unexpectedly terminated its decade-long effort to develop an electric car, as disclosed by insiders familiar with the matter.

This decision marks the conclusion of one of Apple’s most ambitious projects in its history, communicated to nearly 2,000 project-involved employees on Tuesday, according to sources.

Internally, a recent decision has been made to postpone the car’s launch until 2028 and scale back the self-driving capabilities from Level 4 to Level 2+. Despite the initial $100K projection, executives are worried about the car’s profitability aligning with Apple’s standards. The board is also concerned about ongoing expenses, questioning the justification of investing hundreds of millions annually in a project with uncertain outcomes.

Apple has abandoned its decade-long Project Titan for an electric vehicle and is now reallocating resources towards AI development. Despite initial doubts, Apple is venturing into the fiercely competitive AI arena, where Meta, Nvidia, Microsoft, and Alphabet have showcased notable advancements. Facing mounting expectations and market challenges, Apple needs a substantial breakthrough in AI to validate its valuation, ensuring sustained revenue growth, especially after losing the title of the world’s most valuable company to Microsoft.

Chief Operating Officer Jeff Williams and Vice President Kevin Lynch, overseeing the project, informed the team about the decision to wind down the electric car project.

Employees from the Special Projects Group (SPG), previously focused on the car, will transition to Apple’s artificial intelligence division under executive John Giannandrea. They will shift their focus to generative AI projects in line with the company’s evolving priorities.

The fate of several hundred hardware engineers and car designers on the Apple car team remains uncertain, with layoffs expected, though specific numbers are yet to be disclosed.

Apple, based in Cupertino, California, declined to provide additional comments on the matter.

This decision holds significant importance, marking the conclusion of a multibillion-dollar effort initiated around 2014 to propel Apple into the automotive industry.

The project initially aimed to develop a fully autonomous electric vehicle with a luxurious interior and advanced navigation features.

Kandji, an Apple enterprise management provider, has teamed up with ServiceNow to provide comprehensive visibility for Apple fleets. Through this integration, Kandji’s Apple fleet data seamlessly synchronizes with ServiceNow’s Configuration Management Database (CMDB). This collaboration streamlines the management of Apple devices, providing real-time device data for ServiceNow’s CMDB and eliminating the necessity for custom solutions. The integration is crafted to elevate device visibility and management capabilities within ServiceNow’s enterprise resource management platform.

Tim Cook announced during the Annual Shareholder Meeting that Apple plans to “break new ground” in generative AI this year.

Update:

Apple has terminated over 600 employees in California as it moves to conclude its projects involving car and smartwatch displays, according to a filing.