Apple has reportedly decided to halt its decade-long effort to produce its electric car, according to sources familiar with the matter as reported by Bloomberg. Let’s dive into the details of this decision and its implications for Apple’s future projects.
Transition in Strategy
Apple’s executives Jeff Williams and Kevin Lynch recently informed nearly 2,000 employees working on the electric-vehicle project about the shift in focus. The team, known as the Special Projects Group, will now redirect its efforts towards the company’s generative-AI initiatives. This strategic move reflects Apple’s evolving priorities in technology development.
Employee Transition and Potential Layoffs
As part of this transition, several hundred hardware engineers and car designers from the EV team may have the opportunity to explore other roles within Apple. However, reports suggest that an undisclosed number of layoffs could be on the horizon as the company reshapes its workforce to align with its new direction.
Challenges and Changes in EV Plans
Apple’s decision to discontinue its electric car project follows challenges in production, leading to a delayed launch target of 2028. Initially aiming for a fully autonomous vehicle, Apple was reportedly scaling back its ambitions to focus on a design with limited self-driving capabilities, categorized as Level 2+ autonomy.
Financial Considerations
Profit margins and pricing were key concerns for Apple’s EV project, with the company facing substantial annual expenses in the hundreds of millions of dollars. The proposed price tag of around $100,000 for the vehicle also raised questions about market competitiveness and consumer adoption.
Industry Trends and Market Realities
The decision reflects broader challenges in the electric vehicle industry, where companies are grappling with slowing sales growth and financial losses despite significant investments. Market dynamics, including high vehicle prices and shifting consumer preferences, are reshaping strategies for EV manufacturers.
Apple’s Response
Apple has yet to officially comment on these reports or the future trajectory of its automotive endeavors. However, the move underscores Apple’s strategic agility in responding to market trends and technological challenges.
Jade Simon
Johanna Mayer
