Apple reportedly quits EV project after a decade of hype

Apple has called it a quit for its electric vehicle (EV) project after years of hype surrounding this mega product that may never come to the public, according to a report.

The iPhone maker has decided to stop working on its car project after facing several issues surrounding production and market scenarios, report Bloomberg citing people related to this matter.

There have been 2,000 employees working on this EV project known as “Special Projects Group”. Most of these are now relocated to the AI division. Employees from the car design department are eligible to apply for other job roles inside Apple.

Despite garnering so much media attention, Apple never confirmed the project’s existence in public.

Previous reports about Apple’s EV suggested that the project be pushed to a later date about 2028. It was also rumored that the company later shifted the course of its ambitions and focused on a simple EV rather than going fully autonomous.

There were also some findings that Apple keeps on testing its EV in California with autonomous features.

Production Challenges:

It is the biggest challenge after deciding on a prototype and car makers have to spend large chunks of money in setting up production lines while ensuring a robust production.

Take the example of Cybertruck, Tesla has been developing this electric truck for quite some time before 2019’s showcase. The company has to push the deliveries to last year due to the production scale and design refinements.

Profit:

The electric vehicle market is seeing a slight decline in demand due to high prices. Apple executives reportedly expressed concerns surrounding the car’s profit margins.

iPhones generate most of Apple’s income and the profit from that segment reduced since last year. This might be the reason the company may no longer interested in pouring money into other projects.

Furthermore, its recent major release – Vision Pro is also expected to decline in sales which costs $3,499.

Apple has not commented on this matter in the meantime.