- Apple has decided to cancel its electric car project, Project Titan, after a decade of effort and significant investment.
- Nearly 2,000 employees working on the project were surprised by the decision, with some transitioning to Apple’s artificial intelligence division.
- The move aligns with challenges in the electric vehicle market and a broader strategic shift towards generative AI, signaling Apple’s focus on long-term profitability.
Apple Inc. has stopped its electric car project after working on it for ten years and spending a lot of money, as per a report by Bloomberg. This is a big surprise because the project, called Project Titan, was one of the most important projects in Apple’s history.
The decision to stop the project was told to the employees by Jeff Williams and Kevin Lynch, who are high-ranking executives at Apple, on February 27. This news shocked nearly 2,000 employees who were working on the project.
Several employees who were part of the car team will now work in the artificial intelligence division of Apple. They will focus on projects related to generative AI. Others might have to leave the company, but it’s not clear how many people will lose their jobs.
When the news came out, investors reacted positively, and Apple’s stock price went up by 1.2 percent. This means that investors think it’s a good decision for Apple’s future.
Elon Musk, the CEO of Tesla Inc., seemed happy about Apple’s decision. He posted a message on a social media site with a saluting emoji and a cigarette.
Project Titan started in 2014 with the goal of making a self-driving electric car. However, the project faced many problems from the beginning, including issues with leadership and strategy. A few years ago, Kevin Lynch and Jeff Williams took over the project after Doug Field left to work at Ford Motor Company.
The decision to stop the project also makes sense because the electric car market is not growing as fast as it used to. Many people are not buying electric cars because they are expensive, and there are not enough places to charge them. Other car companies, like General Motors and Ford, are making more hybrid cars instead.
Even Tesla, which is a big player in the electric car market, says that sales might not grow as much this year. Some experts think that sales of electric cars in the US might only grow by 11 percent next year, compared to 47 percent this year.
The tech giant is not launching an electric car, but is still spending significantly on other projects. In the last five years, Apple spent $113 billion on research and development. The company recently launched a new product called the Vision Pro headset, which is its first innovative new product in almost ten years.
Apple’s decision to stop making an electric car might be disappointing for some people, but it makes sense for their business. They are now focusing on other projects like generative artificial intelligence, which they believe will be more profitable in the long run.
