After a decade of effort, Apple has reportedly abandoned its plans to build an electric car. A source close to the matter confirmed the news, causing a slight uptick in Apple’s stock prices.

The tech giant had been developing its electric car, codenamed “Project Titan”, for years. However, it seems the project has hit a roadblock. Employees previously working on the car project will reportedly be moved to Apple’s artificial intelligence (AI) division.

“If the reports are accurate, Apple will likely double down on its AI technology development,” stated Ben Bajarin, CEO of Creative Strategies. “This could boost investor confidence as Apple plays catch-up in the AI race.”

Apple’s decision comes during a tough time for electric vehicles. Rising interest rates have dampened consumer enthusiasm, leading to a slowdown in demand. Many big automakers, even market leader Tesla, are scaling back investments and, in some cases, shifting away from fully electric cars.

Apple’s car venture has been troubled from the start. The company laid off employees from the project in 2019 and faced setbacks due to the COVID-19 pandemic. The design itself shifted from a futuristic, self-driving car to a more traditional model.

In Conclusion

While Apple’s electric car ambitions appear to be over, their focus may now be on strengthening their position in the rapidly evolving AI landscape.