Apple has reportedly ended its decade-long pursuit of developing an electric car, according to a Bloomberg report published on Tuesday, February 27, 2024. The news, citing individuals familiar with the matter, signals a significant shift in strategy for the tech giant, which has remained tight-lipped about the project throughout its development.
Chief Operating Officer Jeff Williams and Kevin Lynch, the executive leading the “Apple Car” initiative, reportedly informed the approximately 2,000 employees working on the project of the decision. While the exact reasons behind Apple’s decision remain unclear, several contributing factors are speculated, including evolving design plans, difficulties securing a manufacturing partner, escalating development costs, and a potentially cooling electric vehicle market.
A significant portion of the car team will reportedly transition to projects related to generative AI, a rapidly growing field attracting substantial investment from tech companies. However, layoffs are anticipated among the hundreds of hardware engineers and vehicle designers who contributed to the Apple car project.
Bloomberg reporter and noted Apple analyst Mark Gurman characterized the decision as “a bombshell for the company,” considering the billions of dollars invested over the past ten years. Tesla CEO Elon Musk reacted to the news on social media, seemingly expressing relief at the removal of a potential competitor.
The Apple car project has been subject to numerous rumors and leaks over the years, hinting at internal challenges and uncertainty surrounding its direction. Reports suggest multiple leadership changes and design revisions throughout the project’s lifespan.
Initial plans reportedly envisioned a fully autonomous electric vehicle without a steering wheel or pedals. This ambitious concept was later scaled back to a vehicle with advanced driver-assistance features for highway driving. More recently, Apple reportedly shifted gears again, aiming for an electric vehicle with even fewer self-driving capabilities.
The most recent reports indicated a targeted launch date of 2028. However, with the apparent abandonment of the project, Apple closes the chapter on a challenging endeavor that ultimately proved unsustainable.
MaagX has reached out to Apple for comment and will update this article if a response is received.
