Apple's Ambitious Decade-Long Secret: The Rise And Fall Of The iCar

By Greg Moriarty | Thursday, 29 February 2024 03:00 PM
2
Views 2K
Apple's Ambitious Decade-Long Secret: The Rise And Fall Of The iCar

Apple Inc.'s clandestine endeavor to create its proprietary self-driving electric vehicle (EV) has reportedly come to a halt.

According to multiple sources who spoke to various media outlets on Wednesday, the tech giant has decided to abandon the project after a decade of work yielded minimal return on investment.

The company, known globally for its iPhone, has never publicly admitted to the existence of this project, which engaged approximately two thousand employees. These individuals now face the prospect of reassignment within the company or potential layoffs.

Apple's EV project was once considered a pioneering initiative in the company's bid to diversify beyond the iPhone, which continues to account for approximately half of its worldwide sales.

Despite a decade of effort to compete with established EV manufacturers like Tesla and Rivian, Apple has never officially confirmed the existence of this project. A company spokesperson declined to comment on the matter.

 THE UNSEEN VICTIMS OF WAR: HOW RUSSIA'S INVASION LEFT THOUSANDS OF DISABLED UKRAINIANS IN PERILbell_image

The decision to terminate the project was reportedly communicated to employees on Tuesday. Bloomberg was the first to report this development, which comes at a time when the EV market is experiencing a decline in interest.

 WATCH: BYRON DONALDS ENGAGES WITH HAMAS SUPPORTERSbell_image

The Financial Times reported in January that Tesla had warned of a slowdown in EV sales growth rates through 2024 due to dwindling demand, high interest rates, and increased competition. Ford and General Motors have recently put a hold on their plans to expand EV production capacity. Last week, Rivian announced a 10% workforce reduction and a decision to maintain steady deliveries this year.

 WATCH MAYOR ADAMS: "YOU DON'T TAKE OVER OUR BUILDINGS AND PUT ANOTHER FLAG UP"bell_image

According to the Financial Times, Apple's decision to discontinue its EV project coincides with its plans to reveal more about its work in the rapidly expanding generative AI sector. The tech giant recently launched its new spatial computing headset, the Vision Pro, and has been investing in new chips and personnel to integrate AI features into its devices.

 WATCH: DOJ SET TO INDICT TEXAS DEMOCRAT REP.HENRY CUELLER, WHAT'S AT STAKE, YOU ASK?bell_image

Apple reportedly spent nearly $30 billion on research and development last year, marking a fivefold increase over the past decade.

The team working on Apple's car project, known as the Special Projects Group, was part of CEO Tim Cook's Project Titan, according to the BBC. The company was initially rumored to be developing a fully autonomous vehicle without a steering wheel or pedals. However, the team was reportedly still years away from producing a vehicle that could appeal to an increasingly skeptical market.

 THE HAWAII BILLIONAIRE BATTLE: MEET THE RECLUSIVE RICHEST MAN ON THE ISLAND...bell_image

Ray Wang, founder and CEO of Silicon Valley-based consultancy Constellation Research, told the BBC, "This is a smart and long-awaited decision." He added, "The market demand for EVs is not there and AI is where all the action is."

Elon Musk, the multi-billionaire CEO of Tesla, reacted to the news of Apple winding down its EV project with a salute and a cigarette emoji on the social media platform X, formerly known as Twitter.

X