Apple to Dissolve the Plans of Manufacturing Electric Car

According to Bloomberg, Apple is set to disband its team focused on electric cars, known as the Special Projects Group. This development marks the conclusion of Apple’s covert endeavor to create a car to compete with Tesla. Although the initiative engaged thousands of personnel, it never quite aligned with Apple’s primary business of electronics and online services, prompting speculation about the company’s next move regarding vehicle manufacturing.

Initial reports of Apple’s interest in crafting a car emerged in 2014 after it recruited automotive engineers and other industry talents. While specifics about Apple’s intentions remained scarce, the company operated a scheme featuring self-driving vehicles equipped with sensors and safety drivers navigating the San Francisco Bay Area.

Employees may transition to AI-focused teams.
Shift prompts speculation on future endeavors as employees may transition to AI-focused teams.

Over the years, Apple’s Special Projects Group underwent various reorganizations, including layoffs in 2019 when staff were reassigned to different departments within the company. According to Bloomberg, some employees from the automotive division may transition to a team focusing on generative artificial intelligence.

Although Apple has shuttered its car project, it still harbors other automotive-related endeavors, such as its CarPlay software for in-car infotainment systems, which is reportedly present in 80% of new automobiles.

Apple’s pursuit of a car was part of its internal exploration of technologies with significant market potential. Despite the setback in the automotive realm, the company continues its advancements in health technologies, notably for the Apple Watch. Apple recently unveiled its inaugural virtual reality headset, the Vision Pro.

Apple remains innovative with health tech and virtual reality developments.
Despite setbacks, Apple remains innovative with health tech and virtual reality developments.

While several of Apple’s Asian competitors in the smartphone sector have ventured into car design and potentially manufacturing, Apple has remained reticent about its automotive ambitions. CEO Tim Cook, when questioned about the project in 2016, cryptically remarked that “it’s going to be Christmas Eve for a long time.”

Reflecting its characteristic secrecy, Apple has refrained from disclosing its expenditures in the automotive domain. However, the company’s overall research and development expenditure in 2023 amounted to approximately $30 billion, marking a 14% increase from the preceding year. This budget encompasses investments in novel software and features for existing products like the iPhone.

Following the news, Apple’s stock experienced a marginal increase of less than 1% on Tuesday. Apple declined to provide a comment on the matter.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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