Foreign media said that Apple abandoned the electric car project.
After 10 years of secret efforts, Apple decided to abandon the electric car project.
Bloomberg News reported that some employees working on Apple's electric vehicle project will move to artificial intelligence (AI) departments.
Reuters quoted Ben Bajarin, CEO of the American innovation strategy consulting firm, as saying that if the news that Apple is abandoning the electric car project is true, "Apple will focus more on general AI." This will give investors greater confidence in Apple's efforts and ability to compete with AI at the platform level."
Apple has so far not made a big move in the AI space. In contrast, technology giants such as Google's parent company Alphabet and Microsoft Corp. have taken the lead in the field of AI.
Apple started its electric car program about 10 years ago. Reuters reported in 2020 that Apple was considering releasing an electric car as early as 2024 or 2025.
However, Apple and its CEO Tim Cook have never publicly mentioned the car-building project, referring only to "self-driving systems". The company also did not disclose the amount of its investment in the automotive sector.
According to CNBC, Apple will invest about $30 billion in R&D in 2023, an increase of 14% over 2022. Agence France-Presse reported that Apple is believed to have invested billions of dollars in car projects.
However, Apple's electric car project seems to have come at an inopportune time. As the U.S. Federal Reserve continues to raise interest rates, high interest rates have suppressed consumer sentiment and lowered market demand, forcing the U.S. electric vehicle industry to lay off workers and reduce production. A number of EV makers, including Tesla, have decided to scale back their investments, with some EV makers changing their plans to shift from BEVs to hybrids.
CNBC commented that abandoning the 10-year-old electric car project means the end of Apple's efforts to challenge Tesla's electric vehicles. Apple's electric vehicle program employs thousands of people, but the business has never been compatible with its two core businesses, electronic devices and services, the report said.
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