- Apple has decided to halt its decade-long project to develop an electric car, a move that signals a major shift in the company’s strategic priorities.
- Apple will redeploy several employees who initially worked on its electric vehicle project to its artificial intelligence (AI) division.
- While Apple has pulled out of electric vehicles, the company has been cautious about making significant advances in artificial intelligence.This is in stark contrast to other tech giants such as Alphabet.
Apple has canceled work on its electric car, a source familiar with the matter told Reuters on Tuesday, a decade after the iPhone maker kicked off the project.
Apple Halts Electric Car Project
Apple has decided to halt its decade-long project of developing an electric car, as reported by a source familiar with the matter to Reuters on Tuesday. The cancellation marks the end of Apple’s ambitious venture into the electric vehicle market, which began approximately 10 years ago. This move suggests a significant shift in the company’s strategic focus.
Transition of Resources to AI Division
In response to the discontinuation of the electric car project, Apple is set to redeploy several employees initially dedicated to the electric car initiative to its artificial intelligence (AI) division. Bloomberg News first reported this development, highlighting a strategic reallocation of talent within the company. Ben Bajarin, CEO of consulting firm Creative Strategies, commented on the potential impact, stating that if the news is accurate, Apple’s intensified focus on “GenAI” could enhance investor optimism regarding the company’s AI capabilities and competitive positioning at the platform level.
As these strategies change, so does the leadership. Former Tesla executive Doug Field led Project Titan from 2018 to 2021, after which he joined Ford. Kevin Lynch, who was previously in charge of the Apple Watch, led Project Titan for a long time until it was canceled.
“We are relieved that Apple canceled the plan.” “When you look at Apple’s plans for the future, the automotive project was always the furthest out of reach for Apple, it’s not their foray,” said Dan Morgan, senior portfolio manager at Synovus Trust, an Apple shareholder. Morgan believes Apple would be better off redeploying engineers and investments to areas such as AI that would help its consumer electronics business.
Apple’s AI Strategy in Contrast to Competitors
While Apple withdraws from the electric car sector, the company has traditionally been cautious in making significant strides in artificial intelligence (AI). This stands in contrast to other technology giants like Alphabet, which have aggressively pursued advancements in AI. The decision to shift resources from the electric car project to the AI division may signal Apple’s renewed commitment to AI development, aiming to strengthen its position in the rapidly evolving AI landscape. Apple, however, has chosen not to provide an official comment on these recent developments.
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