Proactive Investors - Apple Inc (NASDAQ:AAPL, ETR:APC) is terminating its decade-long effort to develop an electric car, Bloomberg reported.
Sources familiar with the matter disclosed that the decision came as a surprise to nearly 2,000 employees involved in the project.
Internally disclosed on Tuesday, the decision was delivered by Apple's chief operating officer Jeff Williams and vice president Kevin Lynch, who indicated that the project, known internally as the Special Projects Group, will start winding down.
Many employees from the car team are expected to be reassigned to the artificial intelligence division, where they will focus on generative AI projects.
Investors responded positively to the news, with Apple shares (NASDAQ:AAPL) climbing approximately 1% to $182.63 by the close of trading on Tuesday.
The decision to abandon the electric car project, known as Project Titan, marks the end of a multibillion-dollar endeavor that aimed to propel Apple into the automotive industry. Despite years of development, the project faced numerous challenges, including difficulties in developing self-driving technology and navigating a cooling market for electric vehicles.
Apple declined to comment on the matter.