The non-public decision to cancel the development of Apple’s electric car, which consumers have been waiting for more than 10 years, was made by the company’s Chief Operating Officer Jeff Williams and Vice President Kevin Lynch. Rumor has it that for the 2,000 employees involved in Project Titan, the news was like a bolt from the blue; some of them will move to the AI department, which will become a new priority for the company. A few hundred hardware engineers and car designers are likely to be laid off, but it is not yet known how many will be fired.

Apple began working on an electric car back in 2014, striving to create a fully autonomous electric car with a limousine-like interior and voice navigation. But from the very beginning, everything went awry. Apple has changed the team’s leadership and strategy several times. Lynch and Williams took over the project a few years ago, following the departure of Doug Field, who had become a senior executive at Ford Motor Co, but that didn’t help either. Problems have arisen with autonomous driving technology, which the company has been testing for years in close to state secrecy.

In the end, Apple faced stagnation in the EV market – as did almost all automakers. Sales have fallen because high prices and lack of charging infrastructure scare away ordinary buyers from “clean” electric cars; At best, they buy hybrids. Therefore, taking this into account and the constant increase in costs within the framework of the project, which never “took off”, Apple decided not to postpone the release date of the car, but to say goodbye to the dream of an “apple” electric car and direct resources to generative artificial intelligence. This information was positively received by investors: on Tuesday, Apple’s stock price rose by about 1% to $182.63.

Elon Musk reacted to the news with a tweet with emojis.

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