Apple abandons development of electric car

Apple abandons development of electric car
Katerina Belousova

Apple will direct resources to generative artificial intelligence

Apple has cancelled the development of an electric car, which has been in the works for about 10 years.

This was reported to Bloomberg by project employees on condition of anonymity.

It is noted that a team of 2,000 specialists worked on the project. Some of them are likely to move to other Apple divisions, in particular to projects on generative artificial intelligence, which is becoming an increasingly key priority for the company.

The article says that Apple refused to comment on the situation.

Bloomberg stressed that the company has been developing an autonomous electric car since 2014 and has invested billions of dollars in development. However, the project had a number of problems from the beginning. In addition, Apple's decision was influenced by the decline in demand for electric vehicles in recent months, in particular due to high prices and a lack of charging infrastructure.

It is noted that Apple's biggest contribution to the automotive industry so far has been its CarPlay software. According to Bloomberg Intelligence analysts Anurag Rana and Andrew Girard, focusing on artificial intelligence development may be a better choice for Apple.

"Apple's decision to abandon EVs and focus resources on generative AI is a good strategic move, in our view, given the long-term profitability potential of AI revenue streams compared to cars," they said.

Earlier, EcoPolitic wrote, that a report by research company Rho Motion showed that in 2023, worldwide sales of fully electric and hybrid cars increased by 31% and reached 13.6 million. Global sales of electric vehicles were expected to grow by 25-30% in 2024.

As EcoPolitic previously reported, in 2021, the first images of the Apple electric car concept, which outwardly resembled the Tesla Cybertruck, appeared.

 

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