Apple, the company behind iconic products like the iPhone and MacBook, is reportedly discontinuing its electric car project, known as the Special Projects Group, after a decade of development. The decision to wind down the autonomous electric car initiative was communicated to the team by Apple’s Chief Operating Officer, Jeff Williams, and Kevin Lynch, the Vice President overseeing the Titan project, in a brief 12-minute meeting that did not entertain questions.
The move signifies the end of Apple’s attempt to compete with Tesla in the electric car market. Reports about Apple’s interest in building a car emerged in 2014, with the company recruiting automotive engineers and talent from the auto industry. However, the project was shrouded in secrecy, and Apple never publicly acknowledged it as a car initiative, referring to it as work on “autonomous systems.” In 2020, reports suggested a potential vehicle release around 2024 or 2025.
As part of the discontinuation, numerous employees from the car project team may face uncertainties about their future. While some may have opportunities to transition to other divisions within Apple, the exact number of layoffs remains unclear. There are indications that some employees may move to a generative artificial intelligence (AI) team.
Apple and its CEO, Tim Cook, have been tight-lipped about the car project publicly, and the company never officially confirmed its existence. The project experienced reorganizations over the years, including layoffs in 2019, and the design of the concept car evolved from a radical, steering-wheel-free autonomous vehicle to a more conventional car with advanced driver-assistance features.
Interest rate hikes, aimed at curbing inflation, have impacted consumer sentiment and slowed demand for electric vehicles, prompting industry-wide job cuts and production reductions. Other automakers, including Tesla, have adjusted their plans, focusing on hybrids rather than fully battery-powered cars.
Reports suggest that several employees from the electric car project will be redirected to Apple’s artificial intelligence (AI) division. This strategic shift towards generative AI is seen as a move to capitalize on emerging technologies and potentially more promising revenue streams compared to the uncertainties in the electric vehicle market. While Apple has been relatively reserved in its AI ventures compared to tech giants like Alphabet and Microsoft, this move signals a renewed focus on AI development while continuing substantial investments in research and development.
