In a surprising turn of events, Apple has reportedly scrapped its ambitious electric vehicle (EV) project, leaving the tech world abuzz. The Cupertino-based company, known for its secrecy, had been working on an EV for over a decade, aiming to compete with Tesla. However, Bloomberg recently revealed that Apple has shifted its focus away from cars and redirected its 2,000-strong team to generative artificial intelligence (AI) endeavors
This decision has become quite the talking point, especially among new Chinese players who saw Apple as a formidable rival.Among them is Xiaomi, one of China’s largest electronics companies, renowned for its smartphones and other devices.
Last year, Xiaomi unveiled its first EV, the SU7, after investing over $1.4 billion in development and assembling a team of more than 3,400 engineers2. The SU7, which underwent rigorous testing, is poised to hit the market soon.
Lei Jun, Xiaomi’s founder and chairman, expressed his astonishment at Apple’s sudden pivot. Taking to Weibo, he wrote, “I am very shocked by the news of Apple’s decision to cancel its EV project. As someone who understands the challenges of car manufacturing, Xiaomi has made an unshakeable strategic choice to venture into the EV space.” Lei Jun’s commitment to Xiaomi’s electric car plans remains unwavering, even in the face of Apple’s unexpected exit, he asserted.

Why Apple pulled plug

The decision, disclosed by COO Jeff Williams and VP Kevin Lynch, comes after years of challenges and leadership changes. The project faced hurdles including the departure of key personnel and difficulties navigating the complex automotive industry.
Nearly 2,000 employees were reportedly working on Project Titan. While some will be transferred to Apple’s growing Generative AI team, others may face layoffs or reassignments within the company.
Apple’s strategic decision looks to prioritise advancements in artificial intelligence. With competitors like Google and Microsoft making big strides in AI, Apple may be aiming to close the gap with its own answers in generative AI — something which Apple CEO Tim Cook reaffirmed.