Report: Apple Scraps Self-Driving Electric Vehicle Project

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Facts

  • Apple has reportedly decided to discontinue its electric vehicles (EV) project, reassigning numerous employees to its artificial intelligence (AI) division. The firm had never publicly acknowledged the project.1
  • Apple's Project Titan had reportedly been around a decade with roughly 2K employees. It invested billions of dollars to create a fully autonomous vehicle free of even a steering wheel and pedals.2
  • Apple's nixing of Titan was 'smart,' according to Ray Wang, founder and Chief Executive Officer of Silicon Valley-based Constellation Research. There's little demand for EVs and 'AI is where all the action is,' he said.1
  • There's no word yet from Apple which has been cautious about AI even as Alphabet and Microsoft have invested heavily in the technology.3
  • In addition, higher interest rates to curb inflation have dampened EV demand. Companies like Tesla are cutting expenses while focusing on hybrids instead of fully electric cars.3
  • An Apple car could've potentially transformed the auto industry, possibly competing with Tesla. Elon Musk, Tesla CEO, appeared to welcome Titan's withdrawal, using 'salute' and 'cigarette' emojis on X.4

Sources: 1BBC News, 2Business Matters, 3TimesLIVE and 4NPR Online News.

Narratives

  • Narrative A, as provided by Business Insider. After spending billions of dollars and 10 years developing an EV, Apple has smartly cancelled the project as consumer interest in electric cars has declined and competition has increased even as Chinese automakers have made substantial market gains. Moving resources to generative AI will enhance the company and boost investor confidence rather than deplete its resources like the EV project did.
  • Narrative B, as provided by Apple World Today. For many, it would have been a dream come true to own an Apple electric car. Up to 34% of consumers, according to a survey conducted a few years ago, would be 'extremely' or 'very' inclined to purchase a new Apple EV. Consumers were optimistic that an Apple electric car's design would outperform rivals. Unfortunately, the news from the company's Silicon Valley headquarters signals this will sadly remain a dream.

Predictions