Apple is winding down its team working on electric cars, known as the Special Projects Group, according to a report from Bloomberg. This move marks the end of Apple’s secretive effort to develop a car to compete with Tesla. The program, which employed thousands of employees, was seen as a divergence from Apple’s core business of electronics and online services.
Reports of Apple’s interest in building a car first emerged in 2014 when the company began recruiting automotive engineers and other talent from the auto industry. Although Apple’s plans were kept under wraps, the company operated a program with autonomous Apple-owned cars equipped with sensors and safety drivers in the San Francisco Bay Area.
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Apple’s Special Projects Group underwent several reorganizations over the years, including layoffs in 2019, when some employees were reassigned to different parts of the company. According to Bloomberg, some employees from the car division may now move to a generative artificial intelligence team.
While Apple is discontinuing its efforts on electric cars, the company remains active in other automotive-related projects. This includes its CarPlay infotainment software, which Apple says is installed in 80% of new vehicles.
Apple’s foray into electric cars was part of an internal initiative to explore technologies with significant market potential. The company continues to focus on developing health technologies, particularly for the Apple Watch. Last month, Apple also released its first virtual reality headset, the Vision Pro.
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In contrast to Apple’s move, some of its Asian rivals in the smartphone market have made significant investments in designing and potentially manufacturing cars. For example, Xiaomi, a maker of Android smartphones, recently announced a new electric vehicle. Additionally, Foxconn, Apple’s main manufacturing partner, announced plans last year to build electric vehicles.
Throughout its car project, Apple and CEO Tim Cook never publicly acknowledged the endeavor, instead referring to it as work on “autonomous systems.” In a 2016 shareholder meeting, Cook teased about the project, saying “it’s going to be Christmas Eve for a long time.”
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Apple has not disclosed its expenditures specifically for the auto space. However, the company’s overall research and development budget reached about $30 billion in 2023, representing a 14% increase over the previous year. This budget includes investments in new software and features for existing products like the iPhone.
