Apple is terminating its decade-long electric car project, as reported by sources to Bloomberg. The decision was communicated by Apple executives Jeff Williams and Kevin Lynch to almost 2,000 employees working on the EV team, known as the Special Projects Group.
Many employees from the project will be transitioned to Apple’s artificial intelligence division to focus on generative AI projects. However, some may face layoffs as the company shifts its focus.
Prior to the project’s termination, Apple had faced challenges in production, leading to a delay in the car’s launch to 2028. The company had also shifted its focus from a fully autonomous vehicle to a design with limited self-driving features, categorized as Level 2+ autonomy.
Concerns about profit margins and high production costs were cited as reasons for ending the project. Apple was investing heavily in the project, with plans to price the vehicle at around $100,000.
The decision comes amidst a broader trend of slowing EV sales growth as early adopters dwindle. Other EV companies, such as Rivian, have faced financial challenges despite increasing deliveries.
As of now, Apple has not responded to requests for comments on this matter.
For any individuals who have insights or experiences working on Apple’s EV team, please reach out to BI reporter Aaron Mok at amok@insider.com.
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