Apple suddenly decided to abandon its dream of producing its electric car, after research and development operations that continued over a decade. Since 2014, according to reports, the company has spent billions of dollars on this project, which has undergone several rounds of restructuring over the past years.
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Bloomberg revealed that Apple reached a crossroads this week, when it informed its employees that it would stop completing its electric car project, as the company’s chief operating officer, Jeff Williams, and project leader, Kevin Lynch, informed the members of the work team in charge of developing Apple’s car, which number approximately 2,000 employees of this decision.
The report stated that the American company will reassign some workers in the electric car project to artificial intelligence projects, while others will be assigned to fill other positions inside or outside the company.
Lack of Clear Vision is The Reason Why Apple’s Electric Car Project Has Been Stalled
Some analysts believe that Apple’s project to enter the electric car industry has witnessed a state of instability since its inception.
Because of the lack of clear vision, Anurag Rana and Andrew Girard, analysts at Bloomberg Intelligence, believe, Apple’s shift of its resources toward generative AI is the right decision given the long-term profitability potential of this technology versus cars.
Pointing out that this decisive decision taken by the giant company came at a very correct time, especially since the electric car market has become crowded with competitors and marred by a state of uncertainty.
According to Bloomberg Intelligence forecasts, Electric vehicle sales will rise by just 9 percent in 2024, after growing at a compound annual rate of 65 percent over the past three years.
Clear Challenges Facing the Giants of The Electric Car Industry in The World
Considering the decline in sales of electric cars in the world, both emerging companies and even pioneering companies in this field are facing many obstacles that threaten the future continuation of this revolutionary industry.
The German company Mercedes-Benz has abandoned its plan to convert completely to electric cars by 2030, and General Motors is also facing difficulty in designing electric cars, due to production problems, which prompted it to delay its plans to open a factory to produce electric pickups outside Detroit.
As for emerging companies in the field of electric car production, Rivian Automotive Company expected its production to remain stable this year, and said that it would lay off some workers, and the Lucid Group will manufacture only 9,000 cars during 2024.
Someone’s Disasters Are Other’s Benefits
Some experts believe that Apple’s sudden decision to stop the production line of electric cars is in the interest of companies that have controlled this field for years, such as Tesla, whose owner, the American billionaire Elon Musk, shared a post on X social platform “Previously Twitter.”
Musk expressed his overwhelming happiness with this decision.
The Bloomberg report stated that the challenges facing the future of the electric car industry are not limited to fierce competition and lack of sales only, but also extend to infrastructure obstacles for these cars in many countries, such as the lack of electric charging stations, low quality internet and satellite connectivity.
Source: Bloomberg
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