Apple has reportedly discontinued its 10-year effort to launch an electric car. The self-contained project, Project Titan, employed around 2,000 people and was led by CEO Tim Cook’s Special Projects Group. Apple has not officially confirmed the project’s discontinuation, but reports indicate that most of the team members will now focus on the company’s AI division. Initially, Apple’s EV project aimed to create a fully automatic vehicle without a steering wheel or pedals. However, despite huge investments in research and development, the project remained years away from producing an EV that could be launched in the market.
Apple’s choice to end its EV project goes with its growing interest in artificial intelligence (AI). In addition to its core products like the iPhone and computers, Apple has been proceeding into new areas, as indicated by its recent release of the Vision Pro VR headset. This shift in priorities signifies a deliberate move towards aligning with cutting-edge technologies that are experiencing growing demand.
A Counterpoint Research highlights the growing demand for AI in consumer electronics. Predictions indicate that in 2024, smartphone shipments using generative AI could surpass 100 million and reach over 500 million by 2027. Apple’s strategic resource allocation highlights its motive to maintain its position as a technology leader.
Electric vehicle (EV) manufacturers are facing challenges due to declining demand. Rising interest rates have slowed EV sales, leading to increased competition within the industry. Major players like Ford and General Motors have postponed plans for EV production expansion. Rivian, an EV truck maker, has laid off 10% of its workforce and expects no production growth this year. Tesla, headed by Elon Musk, has adopted a conservative approach, anticipating slower sales growth in 2024 and implementing price reductions globally.
Elon Musk responded to reports of Apple’s EV project termination with emojis on the social media platform X, of a salute and a cigarette. The move by Apple reflects a practical response to market conditions and a strategic pivot towards AI, highlighting the ever-evolving landscape of the technology industry.
