Apple has canceled work on its electric vehicle, a source said, a decade after the iPhone maker started the project
Apple (AAPL.O) has canceled work on its electric vehicle, a source stated on Tuesday, a decade after the iPhone manufacturer began the project. The company’s shares rose 0.7% in afternoon trading, recouping some of their earlier losses.
Several personnel working on the electric vehicle project will be transferred to the company’s artificial intelligence (AI) branch.
“If it is true, Apple will put more emphasis on GenAI, which should give investors more confidence in the company’s efforts and ability to compete on a platform level with AI,” said Ben Bajarin, CEO of consulting firm Creative Strategies.
Apple has so far refrained from making major AI steps, in contrast to other tech behemoths such as Alphabet (GOOGL.O) and Microsoft (MSFT.O), who have a head start in implementing breakthrough technology.
High interest rates to control inflation have harmed consumer mood and caused a halt in demand for typically more expensive electric vehicles, pushing the industry to eliminate employment and restrict manufacturing.
Several major automakers, including EV market leader Tesla (TSLA.O) (opens new tab), have decided to reduce spending, with some altering plans to focus on hybrids rather than completely electric vehicles.
Apple began Project Titan, as its automobile project was known internally, a decade ago, when a surge of interest in self-driving vehicles swept through Silicon Valley.
In 2020, it was reported that Apple was considering delivering a vehicle as early as 2024 or 2025.
However, progress has been unequal even before the COVID-19 pandemic hit the global automotive sector.
Apple let off 190 employees in 2019 after revising its software strategy.
The concept car’s design also evolved, from a radical, steering-wheel-free autonomous vehicle that would have deviated from standard automotive design to a more conventional car with advanced driver-assistance systems.
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