Source: Apple Cancels a Decade-Long Electric Car Project

(CTN News) – An Apple source familiar with the matter on Tuesday confirmed to Reuters that it has halted work on the company’s electric vehicle, a decade after it first announced the project to the public.

There is no doubt that the move is the end of a plan that was intended to help Apple break out into a new industry, and perhaps emulate the success of its iPhone product.

Over the course of its existence, the project had seen uneven progress and its end coincides with a shortfall in demand for electric vehicles as global automakers reduce their investments in them.

According to Bloomberg News, which broke the news first, several employees currently working on the project will be moved to the company’s artificial intelligence (AI) division, which was the initial source of the news.

“It is likely that Apple will be focusing more on GenAI if this is the case, which should boost investor confidence in the company’s ability to compete on a platform level in artificial intelligence,” said Ben Bajarin, CEO of Creative Strategies, a consulting firm that specializes in implementing artificial intelligence systems.

In contrast to tech giants like Alphabet and Microsoft, which have had the overwhelming first mover advantage in integrating the breakthrough technology with their products, Apple has so far resisted any big moves in AI.

There are concerns that Apple’s quiet approach to integrating these technologies into its products may be putting the company behind in integrating them.

According to the analysis of the data, Apple’s share price gained nearly 50% in the past year, which was the smallest gain among the so-called Magnificent Seven stocks in terms of growth.

Microsoft has been ranked as the world’s most valuable company for the past several months, overtaking Apple as the world’s most valuable company as the iPhone maker wrestles with weakness in demand for its key products, especially in China, its biggest market.

As a result of high interest rates, there has been a slowdown in demand for electric vehicles, which are usually more costly, resulting in job cuts and production reductions within the sector.

It has been reported that several major automakers, including the leader in the EV market, Tesla, have announced that they are cutting back on investments, and some are shifting their focus to hybrid cars rather than fully battery-powered vehicles.

SEE ALSO:

Full Story: UBS Cuts Paytm Share Price Target, Says Q4 Results May Hurt