Apple’s U-Turn: Reports Unveil Abandonment of Self-Driving
According to sources, Apple has reportedly abandoned its plans to develop electric vehicles (EVs) after a decade of speculation and investments in the project. The project, internally known as the Special Projects Group under CEO Tim Cook’s Project Titan, involved around two thousand employees. While Apple never publicly confirmed the initiative, reports suggest that the company will reassign many team members to its artificial intelligence (AI) division.
Initially rumored to be working on a fully autonomous vehicle without a steering wheel and pedals, the Apple car project faced challenges and was reportedly years away from producing a vehicle. The decision to shift resources to the AI division aligns with Apple’s broader strategy of diversifying beyond iPhones and computers. The move also comes amid a slowdown in the electric vehicle market, influenced by high borrowing costs and increased competition among major players.
Ray Wang, founder and CEO of Constellation Research, commented on the decision, stating, “This is a smart and long-awaited decision. The market demand for EVs is not there, and AI is where all the action is.”
Apple has explored various opportunities beyond its traditional product lines, including the recent launch of the Vision Pro virtual reality headset. The tech giant has not officially commented on the reported shift in its electric vehicle plans.
The electric vehicle sector has experienced challenges recently, with major players like Ford and General Motors postponing plans to expand EV production. Electric truck maker Rivian also announced a workforce reduction and anticipated no production growth this year. Tesla, a prominent player in the EV market, warned of weaker sales growth in 2024 compared to the previous year.
Elon Musk, CEO of Tesla, responded to reports about Apple’s project with emojis on the social media platform X (formerly Twitter), depicting a salute and a cigarette. The move signals Apple’s strategic decision to prioritize AI over electric vehicles, aligning with the evolving landscape of technology and market demands.
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