Apple Drops Electric Car Plan, Embraces AI

Apple shifts gears, dropping aspirations for electric cars to focus on generative AI

Apple has shifted from developing an electric car to prioritizing artificial intelligence (AI) in its automotive technology. Apple Inc. has reportedly halted its decade-long project to develop an electric car, a move that surprised its nearly 2,000 employees working on the endeavor. The project, known as the Special Projects Group (SPG), was intended to create a fully autonomous electric vehicle with advanced features such as a limousine-like interior and voice-guided navigation.

The decision of Apple to cancel work on the electric car project was communicated internally by Apple's Chief Operating Officer Jeff Williams and Kevin Lynch, a vice president overseeing the effort. Instead of pursuing the electric car, many of the employees from the SPG will be reassigned to Apple's artificial intelligence (AI) division, specifically focusing on generative AI projects.

This shift in focus reflects Apple's evolving priorities and strategic direction. Generative AI, which involves using AI algorithms to create new content, has become increasingly important for the company. By reallocating resources from the electric car project to generative AI, Apple aims to leverage its expertise in AI to drive innovation in other areas.

Apple's decision to cancel the electric car project represents a significant change in direction for Apple. The company had been working on the project since around 2014, to enter the electric vehicle market. However, the project faced numerous challenges, including changes in leadership and strategy.

Despite efforts to revive the project, including leadership changes and strategic shifts, Apple ultimately decided to wind down the project. The decision was made by Apple's senior executives in recent weeks, following a period of uncertainty about the project's future.

One of the main reasons behind the decision to cancel the project was concerns about profitability. Apple had envisioned the electric car being priced at around US$100,000, but there were doubts about whether it could achieve the profit margins that Apple typically expects from its products.

Additionally, Apple's board was concerned about the project's ongoing costs, which reportedly cost the company hundreds of millions of dollars each year. With no clear path to profitability in sight, Apple made the difficult decision to cancel the project and reallocate resources to other areas, such as generative AI.

Overall, Apple's decision to cancel its electric car project marks the end of an ambitious endeavor that would have seen the company enter a new industry. While the project ultimately did not come to fruition, it highlights Apple's willingness to take risks and pursue ambitious projects in its quest for innovation.