Apple has reportedly halted development on its electric car project, known internally as Project Titan, after a decade of effort, according to a source familiar with the matter. This decision comes amidst challenges in the electric vehicle (EV) industry, including high-interest rates impacting consumer demand and leading to a slowdown in EV sales.
Instead of continuing work on the electric car, Apple plans to reallocate resources from the Project Titan team to its artificial intelligence (AI) division. This strategic shift suggests Apple’s intention to bolster its capabilities in AI, potentially enhancing its competitiveness in the broader tech landscape.
While Apple has not officially commented on the decision, industry analysts speculate that the move could signal a pivot towards AI technologies, where Apple has been comparatively less active than other tech giants like Alphabet and Microsoft.
Ben Bajarin, CEO of consulting firm Creative Strategies, believes that this shift could inspire investor confidence in Apple’s long-term strategic vision.
The decision to halt the electric car project reflects broader industry trends, with several major automakers, including EV market leader Tesla, reassessing their investments in fully electric vehicles.
Economic factors such as high-interest rates impacting consumer sentiment have contributed to this industry-wide reassessment, leading to job cuts and production adjustments.
Apple’s Project Titan originally began ten years ago amidst growing interest in self-driving vehicles in Silicon Valley.
While there were initial plans to release a car by 2024 or 2025, progress has been inconsistent, compounded by disruptions caused by the COVID-19 pandemic. Additionally, Apple’s approach to the project evolved over time, with changes in design and workforce restructuring occurring along the way.
