R.I.P. Apple’s Electric Car

Apple’s long-anticipated (and much delayed) project to build an electric car is going to that junkyard heap in the sky, according to a new report from Bloomberg. And much of the team will transition to working on generative AI, though it’s unclear how many people might be laid off.

Apple executives, Jeff Williams and Kevin Lynch, recently shared the news with several hundred staffers on the project that it would “begin winding down,” according to Bloomberg Tuesday. Apple didn’t immediately respond to emailed questions.

As Bloomberg notes, the choice to finally abandon the car project will be considered a “bombshell for the company” since it was a “multibillion-dollar effort” that would’ve meant branching out into a brand new sector for Apple.

The existence of Apple’s electric car project, known as Project Titan within the Cupertino-based company, first leaked in 2014 and has generated buzz for a decade. Rumors about the Apple Car have been coming out ever since, including details it involved fully autonomous capabilities and a price point of $100,000. The latest reports emerged last month that Apple would be delaying the project until at least 2028. A former Apple employee was even convicted of stealing secrets about the secretive project.

Making and selling an Apple Car was always an uphill battle, according to many pundits, given the fact that manufacturing vehicles are not the company’s forte. That’s why it made sense when rumors emerged that perhaps Apple would be partnering with an established car company like Hyundai to create a new vehicle.

Pivoting the Apple Car team to generative AI makes sense for a company that knows how to make computer hardware and software. But it will certainly be a big disappointment for anyone who was looking forward to driving around their iCar. Apple’s stock dipped slightly immediately after Bloomberg’s report but is still up slightly on the day.