Tesla's Competitor? Apple Scraps Electric Car Plans, Rival Xiaomi Showcases Its First EV

Apple plans to disband its Special Projects Group, the team dedicated to electric cars, as reported by Bloomberg.

Closing Chapter: Apple's Electric Car Project Comes to an End, Posing Challenges for Manufacturing

This development marks the conclusion of Apple's covert initiative to create a car to compete with Tesla. Despite involving numerous employees, the project didn't align with Apple's primary focus on electronics and online services, leading to uncertainties about the manufacturing aspect of the vehicle.

apple list of ceos/apple

The ambition first surfaced in 2014 when Apple started hiring auto industry professionals

Apple's interest in building a car became apparent in 2014 when the company started hiring automotive engineers and professionals from the auto industry. Despite maintaining secrecy about its plans, Apple conducted a program involving self-owned vehicles equipped with sensors and safety drivers, conducting autonomous test drives in the San Francisco Bay Area.

This Special Projects Group saw several restructuring and operational changes, including layoffs in 2019. As per Bloomberg, some of the employees in the car division are likely to transfer to a generative artificial intelligence team, according to Bloomberg.

Apple also has some automotive-related projects which include infotainment CarPlay software which is installed on 80 percent of new vehicles, as per the company.

Apple's car project was an internal initiative aimed at exploring technologies with significant market potential. While the focus has shifted, Apple remains dedicated to advancing health technologies, particularly for the Apple Watch. Additionally, the company recently launched its inaugural virtual reality headset, the Vision Pro, showcasing its commitment to innovation in various tech sectors.

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Apple¡¯s smartphone rivals have also tried their hand at designing and manufacturing cars. Xiaomi, a maker of Android smartphones, announced a new electric vehicle this week. Foxconn, Apple¡¯s main manufacturing partner, said last year it will build electric vehicles.

Apple, under the leadership of CEO Tim Cook, never publicly acknowledged the car project, instead referring to it as efforts in "autonomous systems." In 2016, when asked by a shareholder about the project, Cook playfully hinted, saying "it¡¯s going to be Christmas Eve for a long time."

Maintaining its discreet approach, Apple has not disclosed specific expenditures related to the automotive sector. In 2023, the company allocated approximately $30 billion to research and development, marking a 14% increase from the previous year. This R&D budget encompasses investments in new software and features for existing products like the iPhone.

Xiaomi¡¯s First Electric Car Was Showcased In Barcelona Recently

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Xiaomi unveiled its inaugural electric vehicle, the SU7, at the Mobile World Congress in Barcelona. Although initially introduced in China late last year, this marks the first physical appearance of the vehicle.

The SU7, characterized as a stylish and sporty performance sedan, boasts a distinctive blue paint finish, four doors, and is equipped with a fully electric drivetrain. Xiaomi highlights the use of its proprietary electric motors, claiming an impressive acceleration from 0 to 60 mph in just 2.78 seconds.

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