- Apple is ending its electric car project, which has been in the works for about 10 years, people familiar with the matter told Bloomberg.
- Executives at the technology company broke the news to the EV team's approximately 2,000 employees.
- Some will move into other roles focused on generative AI. Others may also be fired.
Apple is abandoning a decade-long effort to make its own electric cars, a source familiar with the matter told Bloomberg.
As of Tuesday, Apple executives Jeff Williams and Kevin Lynch broke the news to about 2,000 employees working on the EV team, known internally as the Special Projects Group, Bloomberg reported. .
Many of the employees working on the project will be transferred to the company's artificial intelligence division to focus on generative AI projects, Bloomberg reports.
Hundreds of hardware engineers and automotive designers who were part of the team may be able to apply for other open positions at Apple, according to Bloomberg. An undisclosed number of layoffs are imminent.
Apple's decision to cancel its EV project comes after the company announced it was pushing back the car's release date to 2028, citing production challenges.
Last month, Apple reportedly pivoted from its original goal of developing a fully self-driving car to a less ambitious design with limited self-driving capabilities. The improved EV (classified as Level 2+ autonomous driving) will park itself, stay centered in its lane, and allow drivers to take their hands off the steering wheel.
Before the project ended, Apple executives reportedly expressed concerns about the car's profit margins, according to Bloomberg. The company is spending hundreds of millions of dollars each year on the project, and the vehicle was expected to cost about $100,000.
EV companies have struggled in recent months as the wave of early adopters dried up, vehicle prices remained high and sales growth slowed.
EV maker Rivian last week reported a $5.4 billion revenue loss in 2023, despite shipping twice as many EVs as last year, according to its latest fourth-quarter results.
Apple did not immediately respond to Business Insider's request for comment.
Do you work on Apple's EV team and have a story to share? Contact BI reporter Aaron Mok. amok@insider.com.
