Apple Axes EV Plans, Shifts Focus On AI Tech Development

Multiple reports have surfaced indicating that tech giants Apple has shelved its electric car project, a decade after its inception. Following which, some employees from the electric car division will reportedly transition to Apple's artificial intelligence (AI) department instead.

Ben Bajarin from Creative Strategies notes that this shift could signal a renewed focus on AI, potentially boosting investor confidence which has since resulted in a spike in the company’s share prices.

So far Apple has refrained from major AI initiatives, unlike competitors such as Alphabet and Microsoft. Further reports also indicate that the company declined to comment on the news.

High interest rates, aimed at curbing inflation, have dampened consumer enthusiasm for electric vehicles (EVs), leading to industry-wide layoffs and production cuts.

Even Tesla, a leader in the EV market, has retracted investments, opting for hybrid models over fully electric ones reports Reuters. We at CariCarz.com however cannot find any resources on this move as Elon Musk had always dismissed the viability of hybrids, preaching that EVs are the way forward.

Marques Keith Brownlee, a prominent tech YouTuber behind the MKBHD channel, was seen commenting on this matter where he said Apple would have realised that they do not need to make a vehicle to be in the EV ecosystem since EV brands are quite bad at software development. Hence Apple would do best working with EV brands to roll out their ecosystem.

Project Titan, as Apple's car endeavour was internally known, began a decade ago amidst Silicon Valley's excitement for autonomous vehicles. However the project's progress has been inconsistent, exacerbated by the disruptions caused by the COVID-19 pandemic.

In 2019, Apple laid off 190 employees from the project group after reevaluating its software strategy.

Since its inception in 2014, the project has faced numerous challenges, including leadership changes and shifting priorities. Kevin Lynch, head of the Apple Watch division, assumed leadership in 2021, streamlining the project while aiming for a viable car product.

The initial concept of the Apple Car, envisioned as a groundbreaking autonomous vehicle, shifted towards a more conventional design with advanced driver-assistance features.