Apple has made the surprising decision to halt its electric car project, marking the end of a significant initiative for the company. The project, known as the Special Projects Group (SPG), involved nearly 2,000 employees who are now facing a shift in their roles.

Key points to note about this development include:

– The discontinuation of the project was communicated internally by Chief Operating Officer Jeff Williams and Vice President Kevin Lynch.
– Efforts will gradually cease, with a considerable number of the SPG team being redirected to focus on generative AI projects under John Giannandrea’s guidance.
– The fate of several hundred hardware engineers and car designers within the SPG remains uncertain, with possibilities for reassignment within other Apple teams.

This unexpected decision brings an end to a project that began in 2014 with the goal of producing a fully autonomous electric vehicle. However, challenges along the way led to its termination. While the Apple Car was envisioned as having a price point around $100,000 USD, concerns about margins and continued investment ultimately led to this outcome.

The decision by Apple’s senior executives comes after a period of reassessment and reports indicating that the project faced critical challenges. This move signifies a shift in priorities for Apple as it navigates the complexities of entering new industries.