Apple Inc has canceled its electric car development efforts, a person familiar with the matter told Reuters on Tuesday, a decade after the iPhone maker launched the project.
The company’s shares were up 0.7% in afternoon trading, recouping some of the losses from earlier in the session.
Several employees working on electric vehicle projects will be transferred to the company’s artificial intelligence (AI) unit, according to Bloomberg News, which first reported the development.
“If this is true, Apple will be more focused on GenAI, which should give investors confidence in the company’s efforts and ability to compete at the AI platform level,” said Ben Bajarin, CEO of consulting firm Creative Strategies. More optimistic.”
Apple has so far not made any major moves in artificial intelligence, in contrast to other tech giants like Alphabet and Microsoft, which have first-mover advantages in integrating breakthrough technologies.
Apple declined to comment.
High interest rates to curb inflation have eroded consumer confidence and slowed demand for typically pricier electric vehicles, prompting the industry to lay off workers and reduce production.
Several major automakers, including electric vehicle market leader Tesla, have decided to withdraw investment, with some plans to shift to focusing on hybrid vehicles rather than fully battery-powered vehicles.
A decade ago, as interest in self-driving cars swept Silicon Valley, Apple launched Project Titan, as the company’s car efforts are known internally.
Reuters reported in 2020 that Apple was considering releasing a car as early as 2024 or 2025.
But even before the COVID-19 pandemic disrupted the global auto industry, progress was uneven.
Apple laid off 190 employees in the group in 2019 after revamping its approach to software.
The design of the concept car has also changed, from a radical steering wheel-less self-driving car that breaks away from traditional car design to a more traditional car with advanced driver assistance features.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
