According to sources familiar with the matter, Apple has decided to halt its ambitious decade-long endeavor to build an electric car, marking the end of one of the most ambitious projects in the company’s history.
Unexpected Internal Announcement:
The disclosure was made internally on Tuesday, surprising nearly 2,000 employees working on the project.
Chief Operating Officer Jeff Williams and Vice President Kevin Lynch, who spearheaded the effort, informed the team that the project would wind down, with many employees transitioning to the artificial intelligence division under executive John Giannandrea.
The focus will shift to generative AI projects, reflecting a key priority for the company.
Transition and Potential Layoffs:
While some employees may apply for positions in other Apple teams, layoffs are expected, though the extent remains unclear. The Special Projects Group (SPG), comprising hardware engineers and car designers, will undergo restructuring.
Market Reaction and Elon Musk’s Response:
Investors reacted positively to the news, with Apple’s stock paring declines and gaining approximately 0.5%. Elon Musk, CEO of Tesla Inc., celebrated the move with a post on [platform], accompanied by a saluting emoji.
The decision to discontinue the project marks a significant development for Apple, ending a multibillion-dollar initiative that aimed to propel the company into the automotive industry.
The project, initiated around 2014, aimed for a fully autonomous electric vehicle with innovative features.
Challenges and Strategic Shifts:
Despite considerable investment and effort, the project faced challenges from the outset, with leadership and strategy changes.
Apple’s senior executives recently finalized the decision to wind down the project following internal discussions about the feasibility and profitability of the venture.
Focus on Innovation and Investment in Other Areas:
While the electric car project has been shelved, Apple remains committed to innovation and investment in other areas.
The company’s significant expenditure on research and development and recent product launches, such as the Vision Pro headset, underscores its ongoing commitment to technological advancement and diversification.