Apple is reportedly discontinuing its electric car initiative, the Special Projects Group, marking a significant shift away from its secretive ambition to compete with automotive giants like Tesla. According to Bloomberg, the decision to wind down the project, which employed thousands and ventured into autonomous driving in the San Francisco Bay Area, aligns with a strategic refocus on Apple’s core businesses of electronics and online services. Despite substantial investments in automotive talent since 2014 and explorations into technologies with broad market potential, Apple is redirecting efforts towards other ventures, including health technologies for the Apple Watch and the newly released Vision Pro virtual reality headset. This move, never publicly acknowledged by Apple or CEO Tim Cook beyond hints at work on “autonomous systems,” suggests a recalibration of the company’s research and development, which topped $30 billion in 2023.
Apple’s withdrawal from the electric vehicle race could have wide-reaching implications for the auto industry and beyond, potentially benefiting competitors by reducing the field but also possibly dampening innovation across the sector. This development hints at a larger trend among tech giants reassessing their diversification strategies, with potential long-term effects on future technology trends. As Apple refocuses on its existing product lines and emerging technologies like generative AI, the industry watches closely how this shift will influence not only Apple’s trajectory but also the broader landscape of tech and automotive collaboration.
