As enthusiasm for the technology wanes, the market approves of the company's decision to shift employees to the fast-growing field of AI.
US tech giant Apple has reportedly scrapped its electric car project after a decade of technology investment and devoted more resources to artificial intelligence (AI).
The cancellation of the decade-old project, reported on Tuesday, was welcomed by the market as employees will be transferred to the company's AI division.
Apple launched Project Titan a decade ago, when the promise of self-driving cars was all the rage in Silicon Valley. The company initially said it hoped to launch self-driving cars as early as 2024.
However, the project has been delayed by factors including the coronavirus pandemic.
Billions of dollars reportedly spent on research and development, but plans to develop innovative self-driving cars without a steering wheel have been scaled back to focus on more conventional cars with advanced driver assistance features was guessed. The company laid off 190 group employees in 2019.
Apple isn't alone. Several major automakers, including electric vehicle (EV) market leader Tesla, have decided to pull back on investments and are making some changes to their plans to focus on hybrid vehicles rather than fully battery-powered vehicles. . Tesla expects sales to be weak this year.
Elon Musk, the billionaire who heads Tesla, welcomed the news of Project Titan's end in a tweet with a salute and a cigarette emoji.
🫡 🚬 https://t.co/f5wn0y95gx
— Elon Musk (@elonmusk) February 27, 2024
The sector is struggling to thrive amid the global economic downturn. High interest rates have raised borrowing costs, slowed demand for typically more expensive electric vehicles, and prompted industry-wide layoffs and production cuts.
