Crafting a brand new vehicle from scratch is undoubtedly a challenging task, a reality even for the world’s biggest tech company, Apple. After a decade-long endeavor, Apple has chosen to terminate its automotive project, instructing employees involved to wrap up their work on it.
Although the car was never officially announced to the world, reports indicated that Apple started working on an electric vehicle in 2014. The tech company harbored big ambitions for the car, aiming to outfit it with voice-activated navigation, autonomous capabilities, and luxurious design features.
Earlier this year, reports suggested that the project had reached a pivotal make-or-break moment, and unfortunately, it failed. According to company insiders who spoke to Bloomberg on condition of anonymity, the surprising announcement of winding down the multi-billion car project was delivered to the 2,000-member-strong team by COO Jeff Williams and Kevin Lynch, a vice president overseeing the effort.
Read: Apple iCar Launch Delayed To 2028, Levels Down On Autonomy
Although some layoffs are reportedly being planned as part of this decision to terminate the Apple car project, the exact number is unclear. It is anticipated that some employees will be reassigned to other projects, particularly in the artificial intelligence division, where generative AI has become an increasingly high priority for Apple.
Earlier reports indicated that the project lacked full support from Apple’s most senior executives, and the company was considering scaling back its ambitions to expedite the development of the iCar or canceling it altogether. Its top executives reportedly made the decision to bury the project in recent weeks.
The decision comes amidst rising interest rates, which have raised concerns about affordability among EV buyers and sparked fears of profitability challenges for startups. Additionally, a string of high-profile crashes has undermined public confidence in autonomous vehicles.
This has fueled skepticism among investors, who appear to support Apple’s decision to cancel the iCar project, as evidenced by a 0.5 percent increase in share prices in the wake of these reports.
Note: This story includes independent illustrations of an iCar that are neither related to nor endorsed by Apple.
