Apple is reportedly discontinuing its ambitious project to develop its own electric car, according to sources familiar with the matter. The company’s executives, Jeff Williams and Kevin Lynch, delivered the news internally to nearly 2,000 employees engaged in the electric-vehicle initiative, known as the Special Projects Group. The decision entails reassigning many team members to Apple’s artificial-intelligence division, with a specific focus on generative-AI projects. While some hardware engineers and car designers may have the opportunity to transition to other roles within Apple, reports suggest that layoffs may be imminent for others.
Pivot Away from Autonomous Vehicle Design
Apple’s decision to halt its electric vehicle (EV) project follows the announcement of a delayed launch date, now slated for 2028, citing production challenges. Recent reports indicated a shift in Apple’s strategy away from developing a fully autonomous vehicle towards a more limited self-driving design, categorized as Level 2+ autonomy. This revised approach would have included features such as self-parking, lane centering, and limited hands-off driving capabilities. However, concerns over profit margins surfaced among Apple executives, with the company facing substantial annual expenditures on the project and intending to price the vehicle at around $100,000.
Challenges in the EV Market
The reported discontinuation of Apple’s EV project reflects broader challenges within the electric vehicle industry. Despite initial enthusiasm from early adopters, EV manufacturers have encountered obstacles in sustaining sales growth amid persistently high vehicle prices. Rivian, a prominent EV manufacturer, recently reported a substantial loss of $5.4 billion in revenue for the latest quarter, despite doubling its EV deliveries compared to the previous year. These developments underscore the complexities and uncertainties facing companies in the EV sector.
Apple’s Response and Future Directions
Apple has yet to officially comment on the reported termination of its electric car project. However, the company’s strategic shift towards AI-focused initiatives suggests a redirection of resources and priorities in response to evolving market dynamics and internal considerations. As Apple navigates these transitions, observers await further developments and insights into the company’s future strategies and endeavors in emerging technology sectors.
Inquiries sent to Apple by Business Insider regarding the matter remained unanswered at the time of reporting.
