Apple to wind down electric car project, signaling shift in focus away from automotive industry

According to a report from Bloomberg, Apple has decided to wind down its Special Projects Group, the team responsible for working on electric cars. This move indicates that Apple will no longer pursue its secretive initiative to develop a car that could compete with Tesla. The project, which involved thousands of employees, did not align with Apple's primary focus on electronics and online services, leading to speculation about potential manufacturing partnerships for the envisioned vehicle.

Origins of the Car Project

The rumors about Apple's interest in building a car emerged in 2014 following the company's recruitment of automotive engineers and talent from traditional car manufacturers. While Apple largely kept its plans under wraps, it was known that the company operated a program involving autonomous vehicles equipped with sensors, which were test-driven by safety drivers in the San Francisco Bay Area.

Changes and Reorganizations

Over the years, the Special Projects Group underwent several reorganizations, including staff layoffs in 2019, resulting in the relocation of affected employees to different departments within the company. As a consequence of the recent decision to phase out the electric car project, some employees from the car division may be transferred to a team focusing on generative AI, as reported by Bloomberg.

Other Automotive-Related Initiatives

Despite discontinuing the electric car project, Apple remains involved in other automotive-related endeavors, such as the development of its CarPlay software, which is tailored for in-car infotainment systems.

Market Response

Following the news, Apple's shares experienced a 1% increase. When approached for comment regarding the matter, Apple declined to provide any statements.