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Morgan Stanley says Apple discontinuing its electric car project is 'a positive development'

Published 02/27/2024, 04:07 PM
Updated 02/28/2024, 06:25 AM
© Reuters. Apple (AAPL) discontinues its electric car project, redirects team to focus on GenAI

(Updated - February 28, 2024 6:23 AM EST)

Apple (NASDAQ:AAPL) reportedly halted the development of its much-anticipated electric vehicle (EV), a move that comes ten years after the initiation of the project known as Project Titan, Bloomberg News reported Tuesday.

The tech giant disclosed the decision internally on Tuesday, surprising the nearly 2,000 employees involved, according to Bloomberg.

The discontinuation of the project was announced internally by COO Jeff Williams and Vice President Kevin Lynch.

Following this decision, a significant number of the project's team, known as the Special Projects Group (SPG), will be redirected to Apple's artificial intelligence (AI) division under executive John Giannandrea, focusing on generative AI projects.

The broader EV industry has been recently grappling with challenges such as high interest rates, which have dampened consumer interest in the typically more expensive cars. This has led to a scaling back of production and workforce reductions across the sector.

Project Titan had been a significant part of Apple's exploration into the automotive industry, particularly focusing on autonomous driving technology.

Despite ambitious plans announced around 2020 to potentially launch a vehicle by 2024 or 2025, the project faced numerous obstacles, including disruptions from the COVID-19 pandemic and a strategic overhaul in 2019 that resulted in the layoff of 190 workers from the team.

Morgan Stanley analysts said the news, if true, "would be a positive development."

Such move "should allow the company to repurpose assets towards more important initiatives like Gen AI," analysts added. Moreover, the actions would also show "relative cost discipline" by Apple's management.

Latest comments

Hahahahaha i never ever support apple products. Selling at ridiculous pricing.
Why when it comes to EVs does mainstream media not mention the growing safety and environmental concerns that is also suppressing demand?
Perhaps they see a crowded market and the ROI doesn't meet the requirements of profit and market share. With AI now a focal area of R & D the prospects of a higher return would seem prudent in going forward positively.
MS analyst also said it's a negative development and poor management
Does anyone invest based on MS advice?
apple. doest care , apple stock will not crash due to this ,
apple stock about to crash and take the US stock market with it - AI AI OH!!!!
It's positive because Apple won't be losing billions
Morgan Stanley analysts tongue twist better than lizard.........
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