Apple has officially stopped development of its electric car, a project that began a decade ago and aimed to revolutionize the automotive industry.
The decision comes amid broader economic challenges and a shift in consumer demand affecting the electric vehicle (EV) market.
A decade after initiating Project Titan, its ambitious endeavor to enter the automotive sector, Apple cancelled the project, part of a realignment in response to the current economic climate and industry trends. Shares of Apple saw a slight increase of 0.7% in afternoon trading Feb. 27, after news of the project's demise was reported, recovering from earlier losses.
The cessation of the electric car project has led to the reassignment of several team members to Apple's artificial intelligence division, as reported by Bloomberg News.
Apple declined to comment.
Rising interest rates aimed at curbing inflation has dampened consumer enthusiasm for high-priced electric vehicles, prompting not only Apple but also established automakers to reassess their strategies. Companies like Tesla have scaled back investments, with a growing focus on hybrid models over fully electric vehicles.
The journey of Project Titan was marked by ambition as well as challenges. Initially sparked by the Silicon Valley craze for self-driving technology, Apple aimed to redefine transportation. Reuters reported in 2020 the possibility of an Apple vehicle launch by 2024 or 2025. However, the path was fraught with obstacles, including a major workforce reduction in 2019. As recently as January, Bloomberg reported Apple was still planning to launch its own EV in 2028, but one featuring "limited autonomous driving," instead of a fully driverless vehicle.
