Apple has reportedly halted its electric car project, marking the end of a decade-long, multi-billion-dollar endeavor aimed at challenging Tesla's dominance in the electric vehicle market.
According to a Bloomberg report, the decision to abandon Project Titan, as it was known internally, was disclosed by Chief Operating Officer and Vice President on February 27, catching nearly 2,000 project employees off guard.
The tech giant got into the market “because when you already lead all the other largest product categories, you need to find a new product category that’s big enough to be meaningful,” said Gil Luria, a senior software analyst and managing director at D.A. Davidson & Co.
But, Luria noted, the automotive industry is a tough market with low margins and a wealth of competition.
“Apple has very high levels of profitability for the rest of its businesses” he added. “The fact that [Apple] decided this isn’t a market that can ever get to that level of profitability is probably a signal to other participants it may not be worth their time.”
The termination of Project Titan signifies the conclusion of one of Apple's most significant and ambitious projects in its history.