The decade-long anticipated Apple electric car will not be realized, a source familiar with the matter disclosed on Tuesday. The company’s decision to stop “Project Titan” signals a major shift in its approach to future technology ventures.
Apple started on its EV project, known as “Project Titan”, 10 years ago. It had about 5,000 workers at one point and yet over the decade, they’ve been decreasing their staff. The report from Bloomberg suggests that the project was under pressure from the company’s top executives to bring something to the market right away.
Apple tried to make an EV for 10 years, has a cash pile of $162 billion, and still ultimately came to the conclusion that it’s too hard, and that margins would be too small—even at a $100k price.
Originally, Apple wanted it to be a fully autonomous vehicle, but they didn’t have… pic.twitter.com/zkG8YmGSIC
— Sawyer Merritt (@SawyerMerritt) February 27, 2024
How About the Workers?
Apple plans to dissolve the team that had been working on the electric car project and redirect their efforts to other projects within the company. It is reported that the staff from the disassembled “Project Titan” will be reassigned on areas focusing on artificial intelligence and machine learning projects.
Sources from Bloomberg reported that there are around 1,400 employees fearing to lose their jobs at the moment. They have 90 days to be reassigned to Apple’s generative AI projects, but some may be laid off.
What Caused It?
The project’s cancellation was due to multiple factors, including the immense challenges associated with automotive manufacturing and autonomous technology development. The company’s pivot away from electric vehicles was also influenced by a broader assessment of its portfolio and long-term goals.
Reports also highlight the financial implications of this decision. Apple’s withdrawal from the electric car race is seen as a concession to the complexities of automotive manufacturing, a sector where the company had hoped to make a significant impact.
The cancellation of the Apple electric car project signifies a major strategic realignment for the tech giant. With its ambitions of revolutionizing the automotive industry now behind it, Apple looks to the future, focusing on areas where it believes it can make the most significant contributions to technology and society.
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