Apple Shifts Gears: Electric Car Development Hits The Brakes

iPhone and Macbook maker Apple, has reportedly cancelled its plans to build electric cars, a source familiar with the matter told Reuters on Tuesday, a decade after the company kicked off the project.

Several employees working on the electric car project will be shifted to the firm's artificial intelligence (AI) division, according to Bloomberg News, which first reported the development.

While Apple has not provided any official comment, the move to shift-away from electric vehicles comes amidst souring consumer sentiment and a slowdown in demand for usually pricier electric vehicles.

A Reuters report in 2020 even suggested that Apple was considering releasing a vehicle as soon as 2024 or 2025. However, progress on this endeavor faced challenges even before the onset of the COVID-19 pandemic, which significantly disrupted the global automotive industry.

As it spent billions of dollars on research and development, the company was initially rumoured to be developing a fully autonomous vehicle devoid of traditional features like a steering wheel and pedals.

However, the concept evolved over time, transitioning from a radical, steering-wheel-free autonomous design to a more conventional car equipped with advanced driver-assistance features.