Tech giant Apple is reportedly winding down its efforts on electric cars, disbanding its Special Projects Group dedicated to the endeavor. According to Bloomberg, this decision marks the conclusion of Apple’s secretive venture to develop an electric vehicle to compete with Tesla.
The initiative, which involved thousands of employees, faced challenges aligning with Apple’s core business of electronics and online services. Questions also arose regarding the manufacturing aspect of the vehicle, raising doubts about Apple’s strategy in the automotive sector.
Rumors about Apple’s interest in building a car emerged in 2014 when the company began recruiting automotive engineers and talent from established auto manufacturers. Although details about Apple’s plans remained scarce, the company ran a program featuring autonomous vehicles equipped with sensors and safety drivers in the San Francisco Bay Area.
Over the years, Apple’s Special Projects Group underwent multiple reorganizations, including layoffs in 2019, when employees were reassigned to different departments within the company. Some personnel from the car division may transition to a generative artificial intelligence team, Bloomberg reported.
Despite shelving its electric car ambitions, Apple remains engaged in other automotive-related projects, notably its CarPlay infotainment software installed in a significant portion of new vehicles.
The decision to halt the electric car project underscores Apple’s broader approach to seek technologies with immense market potential. While the company continues to invest in health technologies, particularly for its Apple Watch, it recently ventured into virtual reality with the launch of its first VR headset, the Vision Pro.
Although Apple never publicly acknowledged the car project, referring to it as “autonomous systems,” CEO Tim Cook hinted at ongoing developments. However, as part of its secrecy, Apple has not disclosed specific expenditures related to the auto industry, despite allocating approximately $30 billion for research and development in 2023, primarily focusing on software enhancements for existing products like the iPhone.
Following the news, Apple’s stock saw a marginal increase of less than 1% on Tuesday. The company declined to comment on the matter, maintaining its characteristic silence regarding its internal projects and strategies.
