Apple Cancels Electric Car Effort, Reassigns 2,000 Employees

  • Editor
  • February 28, 2024
    Updated
Apple-Cancels- Electric-Car-Effort-Reassigns-2,000-Employees-to-AI-Projects

After a decade-long effort to break into the automotive industry, Apple Inc. has decided to halt its electric car project, shocking the tech and automotive worlds.

The initiative, known as the Special Projects Group (SPG), will be wound down, with its members, including hundreds of hardware engineers and car designers, redirected to artificial intelligence efforts under executive John Giannandrea.

The move aims to bolster Apple’s focus on generative AI projects, reflecting the company’s strategic shift towards AI as a key priority.

Here is what people are saying:

The internal announcement, made by Chief Operating Officer Jeff Williams and Vice President Kevin Lynch, came as a surprise to the nearly 2,000 employees involved. Despite the potential layoffs, the decision has been met with relief by some investors, evidenced by a slight uptick in Apple’s stock price following the news.

Here’s what happened:

Apple’s electric car venture started around 2014, with ambitions for a fully autonomous vehicle boasting a limousine-like interior and voice-guided navigation. However, the project faced numerous challenges from its inception, including leadership changes and strategic pivots.

The most recent discussions had considered delaying the car’s release to 2028 and scaling back its self-driving capabilities.

The memes are crazy though:

Concerns over the project’s viability and alignment with Apple’s profit margin expectations played a crucial role in the decision to cancel. Despite the setback, Apple continues to invest heavily in research and development, with $113 billion spent over the past five years, demonstrating the tech giant’s commitment to innovation across various sectors.

Here is one fun fact: Elon Musk offered to sell Tesla to Apple during what he referred to as the “darkest days” of the Model 3 program.


The cancellation of Apple’s electric car project marks the end of a bold attempt to enter a new industry, underscoring the challenges tech companies face in expanding beyond their core competencies. As Apple redirects its resources to AI, the industry awaits the next chapter in the company’s storied history of innovation.

For more such latest news visit our AI news section at Allaboutai.com.

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Dave Andre

Editor

Digital marketing enthusiast by day, nature wanderer by dusk. Dave Andre blends two decades of AI and SaaS expertise into impactful strategies for SMEs. His weekends? Lost in books on tech trends and rejuvenating on scenic trails.

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