Apple has abandoned decade-long efforts to build an electric car, according to multiple media reports, calling time on a project that some saw as potentially transformative for the auto industry.
Many employees working on the project, known internally as “Project Titan,” will be moved to the company’s artificial intelligence division, according to Bloomberg, which first reported the decision citing people with knowledge of the matter. CNN has contacted Apple (AAPL) for comment.
The news comes as electric vehicle (EV) sales have disappointed, prompting several major carmakers to pull back on investments and slash prices. AI, on the other hand, is having a moment and Apple’s reported shift in resources could help it close the gap with rivals such as Microsoft and Google, which have stolen a march on the breakthrough technology.
“The tech giant is following a trend, with investors’ enthusiasm for electric vehicle investments waning, amid the frenzy for all things AI,” said Susannah Streeter, head of money and markets at UK-based investing platform Hargreaves Lansdown.
“It’s vital that Apple stays one step ahead in developing the tech people crave, to justify its products’ high price points, so fully exploring the opportunities AI presents for its future ranges is essential,” she wrote in a note Wednesday.
The iPhone maker never confirmed long-running speculation that it would make an EV, but had taken several steps over the past 10 years that suggested it was serious about such efforts.
CNN
