As enthusiasm for the technology wanes, markets approve of the company's decision to move its employees into the burgeoning AI sector.
US tech giant Apple has reportedly canceled its electric car project after a decade of investment in the technology, devoting more resources to artificial intelligence (AI).
The discontinuation of the decade-old project, which was reported Tuesday and will see employees move to the company's AI division, was welcomed by markets.
Apple started Project Titan 10 years ago, at a time when the promise of autonomous vehicles was all the rage in Silicon Valley. It originally said it hoped to launch an autonomous vehicle as early as 2024.
But the project was stuck in the slow lane, hampered by factors such as the COVID-19 pandemic.
Billions were reportedly invested in research and development, but plans to create a radical, autonomous vehicle without a steering wheel were scaled back to focus on a more conventional car with advanced driver-assist features. The company laid off 190 group workers in 2019.
Apple is not alone. Several leading automakers, including electric vehicle (EV) market leader Tesla, have decided to withdraw their investments, and some have changed their plans to focus on hybrids rather than fully battery-powered cars. Tesla has projected a sales decline this year.
Billionaire Elon Musk, who runs Tesla, received the news of the demise of Project Titan with a tweet with emojis of a greeting and a cigarette.
🫡 🚬
– Elon Musk (@elonmusk) February 27, 2024
The sector has struggled to thrive in a sluggish global economy. High interest rates have increased the cost of borrowing, causing a slowdown in demand for generally more expensive electric vehicles, prompting the industry as a whole to cut jobs and reduce production.
