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Apple Abandons Electric Car Project After a Decade of Development

New York, February 28, 2024, The Europe Today: Apple has decided to halt its ambitious electric car project, a source familiar with the matter informed Reuters on Tuesday. This marks the end of a decade-long initiative that aimed to establish Apple in the electric vehicle (EV) industry, potentially mirroring the success the tech giant achieved with the iPhone.

The project faced challenges and displayed uneven progress throughout its development. The decision to cancel it aligns with the broader trend of global automakers scaling back their investments in electric vehicles amid a significant drop in demand for such vehicles.

Several employees previously dedicated to the electric car project will reportedly be reassigned to Apple’s artificial intelligence (AI) division, according to Bloomberg News, which first reported the development. Apple declined to provide official comments on the matter.

Ben Bajarin, CEO of consulting firm Creative Strategies, noted, “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.”

Apple, known for its reserved approach to AI compared to industry giants like Alphabet and Microsoft, has been cautious in integrating breakthrough AI technology into its products. This reserved strategy has led to concerns that Apple might be falling behind in adopting AI in its offerings.

The news of Apple’s withdrawal from the electric car venture comes at a time when its share gains, approximately 50% last year, were the smallest among the so-called “Magnificent Seven” stocks. In January, Microsoft surpassed Apple as the world’s most valuable company, highlighting challenges for the iPhone maker, especially in markets like China, where demand for its key products has weakened.

Furthermore, the global slowdown in demand for electric vehicles, driven by higher interest rates and economic uncertainties, has led to industry-wide measures such as job cuts and production reductions.

Apple’s shift in focus to AI could signal a strategic move to strengthen its position in the rapidly evolving technology landscape, bringing new perspectives on the company’s future directions in innovation and competition.