Apple is reportedly winding down its Special Projects Group, the team dedicated to developing electric cars, marking an end to the tech giant’s secretive efforts to enter the automotive market. This move signals a shift away from Apple’s attempt to rival Tesla and raises questions about the future direction of its automotive ambitions. Bloomberg reports that the program, which employed thousands and focused on electronics and online services, never fully aligned with Apple’s core business operations.
Background of Apple’s Automotive Ambitions
Speculation about Apple’s interest in building a car began in 2014, following the recruitment of automotive engineers and talent from within the auto industry. Despite the limited public information, Apple had been operating a fleet of autonomous vehicles equipped with sensors in the San Francisco Bay Area, hinting at its exploration of autonomous driving technologies.
Reorganizations and Shifts Within Apple’s Car Project
The Special Projects Group experienced several reorganizations, including a significant layoff in 2019, with many employees redirected to other divisions within Apple. Recent reports suggest that some team members from the discontinued car project may transition to working on generative artificial intelligence initiatives.
Apple’s Continuing Automotive and Technological Ventures
Despite stepping back from its electric car project, Apple remains active in the automotive sector through its CarPlay infotainment software, which boasts installation in 80% of new vehicles. The company is also advancing in other technology fronts, including health technologies for the Apple Watch and the recent launch of the Vision Pro, its first virtual reality headset.
Competitive Landscape and Apple’s Strategic Silence
Apple’s decision to halt its car project comes as its Asian competitors, including Xiaomi and Foxconn, Apple’s main manufacturing partner, advance in the electric vehicle sector. CEO Tim Cook and Apple have maintained public silence on the project, previously describing it as an exploration of “autonomous systems.” Apple’s substantial R&D expenditures, totaling about $30 billion in 2023, highlight its ongoing investment in innovation across its product lines.
