Apple Abandons Electric Car Project, Shifts Focus to AI

Shift from Electric Car to AI

According to multiple media reports, Apple has decided to cancel its decade-long project, known as "Project Titan," to build an electric car. Instead, the company will now focus on its artificial intelligence division. The move comes as a surprise to many who saw the project as potentially transformative for the auto industry.

Sources indicate that many employees working on the electric car project will be reassigned to AI-related initiatives. This shift in resources aligns with the current trend of decreasing enthusiasm for electric vehicle investments and increasing interest in AI technologies.

By redirecting its efforts towards AI, Apple aims to close the gap with competitors like Microsoft and Google, who have already made significant strides in the field. The company recognizes the importance of staying ahead in developing the technologies that consumers crave in order to justify its high-priced products.

Apple's Past Efforts and Speculations

Although Apple never confirmed its intention to manufacture an electric car, it took several steps that suggested its interest in the industry. The company began hiring automotive executives in 2014 and later obtained a permit to test self-driving vehicles. It also acquired a self-driving car startup and hired a veteran from BMW's EV division.

While Apple secured car-related patents, speculations arose that the company might focus on selling car operating systems, self-driving software, or other related technologies rather than manufacturing the entire vehicle. Tesla CEO Elon Musk even claimed that he had once attempted to sell Tesla to Apple, but the offer was refused by CEO Tim Cook.

Industry experts have previously stated that an Apple car could have been a transformative event similar to the iPhone's impact on the mobile phone sector. However, Apple's decision to shift its focus suggests that it has reevaluated the potential of entering the highly competitive EV market.

Foxconn Explores EV Business

Although Apple is stepping back from its electric car project, one of its major partners, Foxconn, sees a significant opportunity in the industry. Foxconn, known for manufacturing iPhones, has announced its plans to diversify into producing electric cars, with sales scheduled to begin this year.

Foxconn's CEO, Young Liu, believes that the EV business model needs to be reinvented. With their manufacturing expertise, the company aims to make a mark in the competitive electric vehicle market. This move showcases the continuing interest and potential for growth within the industry despite Apple's decision.