Apple has decided to discontinue its decade-long pursuit of developing an electric car, marking the end of one of the tech giant’s most ambitious endeavors. The decision was communicated internally, catching nearly 2,000 project employees off guard. Chief Operating Officer Jeff Williams and Vice President Kevin Lynch broke the news, revealing plans to wind down the project, known as the Special Projects Group (SPG).
Many team members from the car project will transition to Apple’s artificial intelligence division, focusing on generative AI projects. This realignment reflects Apple’s evolving priorities and strategic shifts. The car team comprises hundreds of hardware engineers and car designers, but the extent of potential layoffs or reassignments remains uncertain.
Investors responded with relief to the decision, resulting in a slight uptick in Apple’s stock. Elon Musk, CEO of Tesla, also expressed support for the move.
The termination of the electric car project represents a significant development for Apple, concluding a multibillion-dollar initiative aimed at venturing into the automotive industry. Apple began exploring the concept of a car around 2014, envisioning a fully autonomous electric vehicle with advanced features.
However, the project faced challenges from the outset, undergoing multiple leadership and strategy changes. Kevin Lynch and Jeff Williams took control a few years ago. The recent decision to discontinue the project was finalized by Apple’s senior executives, following reports of the project reaching a critical juncture. The company had considered delaying the car release until 2028, scaling back self-driving specifications, and addressing profitability concerns.
Despite abandoning the car project, Apple continues significant investments in various areas, allocating $113 billion to research and development over the past five years. The company recently expanded into new product categories with the launch of the Vision Pro headset, demonstrating its commitment to innovation and growth.