The development of the electric car involved around 2000 people. They were surprised to learn that the project was gradually ending and that some of them would be transferred to the AI division. The team includes several hundred hardware engineers and automotive designers. It is possible that they will be able to apply for jobs in other departments of the company. There will likely also be layoffs, but it is not clear to what extent, according to Bloomberg.
The company invested billions of dollars in the project, which would have pushed it into a completely new industry. The original goal was to create a fully autonomous electric car with a limousine-like interior and voice-controlled navigation. However, the project faced problems from the beginning, and Apple changed the team leadership and strategy several times.
The decision to end it came from the company’s leadership in recent weeks. Bloomberg reported a month ago that the project had reached a critical point. The last internally discussed approach was to delay the car’s market launch until 2028 and reduce the vehicle’s autonomy level from level four to level two plus. Autonomous vehicles have six levels, from zero to five, with level five being the most advanced, fully autonomous vehicle.
The company had previously expected the car to be priced around $100,000 (2.3 million CZK). However, the leadership was concerned whether the vehicle would be able to achieve the profit margins that Apple typically achieves with its products.
The report brought relief to some investors. Apple’s shares erased losses and strengthened after the announcement.
Apple Halts Electric Car Project
Apple has made the decision to halt its electric car project, which aimed to create a fully autonomous electric vehicle with a luxurious interior and voice-controlled navigation. The company had invested billions of dollars into the project, with the goal of entering a completely new industry sector. However, the project faced numerous challenges from the beginning, leading to changes in the team leadership and strategy.
According to Bloomberg, the project had reached a critical point, prompting the company to consider ending it. The latest internal discussions suggested delaying the vehicle’s release to 2028 and reducing the vehicle’s autonomy from level 4 to level 2+. Autonomous vehicles have six levels of autonomy, with level 5 being fully autonomous.
Initially, the company had estimated the vehicle’s price to be around $100,000. However, there were concerns about whether the vehicle would be able to achieve the profit margins that Apple typically aims for with its products.
Despite the disappointment for some investors, Apple’s stock rebounded after the announcement, indicating confidence in the company’s decision.
The Future of Apple’s Innovation
While the decision to halt the electric car project may come as a surprise to some, it reflects Apple’s commitment to maintaining high standards of innovation and quality. Rather than pursuing a project that may not meet its profitability targets, Apple is likely to redirect its resources and expertise towards other groundbreaking initiatives.
Apple’s track record of innovation and success in the technology industry suggests that this decision is part of a strategic approach to ensure that the company continues to lead in the development of cutting-edge products and services.
It will be interesting to see how Apple leverages its experience from the electric car project to further advance its position in the rapidly evolving automotive and transportation sectors. Whether through partnerships, acquisitions, or entirely new ventures, Apple is poised to make significant contributions to the future of mobility.
As the company continues to explore new opportunities, the decision to halt the electric car project may ultimately pave the way for even more impactful and transformative innovations from Apple.
