Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Apple has cancelled its efforts to build an electric car as it pivots to focus research funding on generative artificial intelligence, according to a person familiar with the matter.
Known as “Project Titan”, Apple’s electric vehicle project was an example of its attempts to diversify beyond its hit product, the iPhone, which still makes up about half of its global sales.
The decade-long effort to build a product that competes with the likes of Tesla and Rivian has never been officially confirmed by Apple, and a spokesman for the company declined to comment. The news, which was announced to employees on Tuesday, was first reported by Bloomberg.
The cancellation comes as the EV industry has slowed in recent months. In January, Tesla warned that flagging demand, high interest rates and intensifying competition would lead to slower sales growth rates this year.
Ford and General Motors have paused plans to expand their EV manufacturing capacity in recent months, and last week Rivian announced that it would cut 10 per cent of its workforce and keep deliveries flat this year.
Apple’s decision to wind up its car project comes as it prepares to announce more details of its work in the fast-growing generative AI sector. Investor attention is focused on when the tech giant will bring new features to its smartphones to keep pace with rivals such as Samsung and Google.
This month Apple released its new spatial computing headset, the Vision Pro, and has been spending on new chips and employees as it prepares to bring AI features to its devices.
Apple says it has been accelerating its research and development, spending nearly $30bn last year, with a fivefold increase in spending over the past 10 years.
Apple shares ended the day up 0.8 per cent. Over the past 12 months they have risen almost 24 per cent.
Read the full article here
