Apple electric car: Elon Musk REACTS on project suspension

Apple has suspended work on its electric car project after a decade
A representational image of an electric vehicle. — Pixabay
A representational image of an electric vehicle. — Pixabay

Almost a decade after announcing the electric car project, Apple has suspended work on it as global automakers cut back their investments in electric vehicles due to a decline in demand.

Sources familiar with this matter told Bloomberg that thousands of employees working on the Apple electric car project will be shifted to the Cupertino-based company’s artificial intelligence (AI) division.

Consulting firm Creative Strategies CEO Ben Bajarin told Reuters: "If it is true, Apple will put more focus on GenAI and that should give investors more optimism about the company's efforts and ability to compete at a platform level on AI."

Read more: Apple abandons Apple Car project to channelise workforce, resources on GenAI

It should be noted that a decline has been witnessed in the demand for electric vehicles due to high-interest rates which has also led to job cuts and less production.

Several major automakers, including EV market leader Tesla, have decided to pull back on investments, with some shifting plans to focus on hybrids instead of fully battery-powered cars.

Tesla CEO Elon Musk cheered Apple's move on X social media with a post of a saluting emoji and a cigarette.

It should be noted that Apple kicked off Project Titan, as its car effort was known internally, a decade ago, as a wave of interest in self-driving vehicles swept through Silicon Valley.

Reuters reported in 2020 that Apple was considering releasing its proposed car as soon as 2024 or 2025.