Apple Inc., the technology giant known for its iPhones and other innovations, has decided to cancel its ambitious project to build an electric car, according to insiders familiar with the matter, Bloomberg reported. This decision marks the end of a decade-long effort that aimed to revolutionize the automotive industry.

The End of Project Titan: A Multibillion-Dollar Effort

A day before, Apple made the internal announcement, surprising its nearly 2000 employees dedicated to the project. Chief Operating Officer Jeff Williams and Vice President Kevin Lynch delivered the news, revealing that the project, known as Project Titan, would be winding down.

Many employees from the car team, dubbed the Special Projects Group (SPG), will be transitioned to the artificial intelligence division to work on generative AI projects, a strategic focus for the company.

While some employees may find roles in other Apple teams, layoffs are expected, although the extent remains uncertain. The decision to abandon the project has sent Apple’s stock rising, and even Elon Musk, CEO of Tesla Inc., celebrated the move on social media.

Project Titan was Apple’s ambitious endeavor to develop a fully autonomous electric vehicle, featuring luxurious interiors and advanced navigation systems. However, the project faced challenges amid a cooling market for electric vehicles (EVs). High prices and inadequate charging infrastructure hindered mainstream adoption, leading to stagnant sales growth.

Industry Trends and Market Realities

Other automakers, including General Motors and Ford, have shifted focus towards producing more hybrid vehicles due to sluggish demand for EVs and manufacturing challenges. Tesla, despite being a pioneer in the EV industry, anticipates slower growth, reflecting broader market trends.

While Apple’s exit from the electric car market is significant, it underscores the challenges facing the industry. Despite the setback, Apple remains committed to innovation, redirecting resources towards areas with greater potential, such as artificial intelligence.