“Apple Reportedly Cancels Plans for Electric Vehicles, Shifts Focus to AI Division”

Apple Reportedly Shifts Focus from Electric Vehicles to AI Division

Apple has reportedly made the decision to cancel its plans for building electric vehicles (EV) and instead shift its focus to its artificial intelligence (AI) division. This comes a decade after rumors first emerged about Apple’s involvement in the EV project. While the company has never publicly acknowledged the project, it is believed to have involved around two thousand employees. According to Bloomberg News, many of these employees will now be transferred to Apple’s AI division.

The Apple car team, known as the Special Projects Group under CEO Tim Cook’s Project Titan, had been investing billions of dollars in research and development. Initially, the company was rumored to be working on a fully autonomous vehicle without a steering wheel or pedals. However, it was understood that the team was still years away from producing a vehicle.

Industry experts have praised Apple’s decision to shift its focus to AI. Ray Wang, founder and CEO of Silicon Valley-based consultancy Constellation Research, called it a “smart and long-awaited decision.” Wang believes that the market demand for EVs is currently lacking, while AI is where all the action is happening.

Apple has been actively exploring opportunities beyond its flagship products like the iPhone and computers. The company recently launched its Vision Pro virtual reality headset, signaling its interest in expanding into new areas. With the cancellation of the EV project, Apple can now redirect its resources and talent towards further advancements in AI technology.

The decision to cancel the EV project comes at a time when demand for electric vehicles has been slowing down. High borrowing costs have made the market increasingly competitive, with major players struggling to win over customers. Even US motor industry giants Ford and General Motors have postponed their plans to expand EV production in recent months.

Last week, electric truck maker Rivian announced a 10% reduction in its workforce and expressed no expectations for production growth this year. Tesla, led by multi-billionaire Elon Musk, has also faced challenges. The company warned of weaker sales growth in 2022 compared to the previous year. To stay competitive, Tesla has been cutting prices in key markets worldwide, including Europe and China, where it faces tough competition from Chinese rivals like BYD.

Elon Musk himself responded to reports of Apple winding down its EV project on the social media platform X (formerly known as Twitter). He posted emojis of a salute and a cigarette, suggesting that he sees Apple’s decision as a sign of respect or acknowledgment.

In conclusion, Apple’s reported cancellation of its plans for electric vehicles and shift towards its AI division reflects the changing dynamics of the automotive industry. With the current market demand for EVs being uncertain and AI technology gaining momentum, Apple’s decision seems strategic. By redirecting its resources towards AI, Apple can continue to innovate and explore new opportunities beyond its traditional product lines.