(Dmytro “Henry” Aleksandrov, Headline USA) Apple recently revealed that it ended its decade-long pursuit to enter the electric vehicle market after wasting billions of dollars.
One of the reasons why Apple pulled the plug was that the company was spending a lot of money while trying to catch up to Elon Musk’s Tesla Motors, according to the Daily Wire.
“It makes no sense whatsoever for Apple to sell a car. Apple makes 40-50pc gross margins on the products it sells, and it will not make that on seats and steering wheels,” technology analyst Richard Windsor said back in 2023.
The news source added that the company wanted to develop new battery technology that would dramatically cut the cost of electric vehicles and develop software that would make their cars fully self-driving.
Some of the 2,000 Apple employees who were working on the project will be transferred to other areas of the company while others will be fired.
“Apple canceling this project is a sigh of relief for us. When you look at Apple’s future initiatives, the car project was always the most far-fetched for Apple. This just isn’t in their wheelhouse,” Dan Morgan, a senior portfolio manager at Apple shareholder Synovus Trust, said.
Last month, Apple said that it was pushing back its timetable for debuting its electric car from 2026 to 2028, which comes as the electric vehicle market has fallen off significantly in recent years due to the vehicles not being popular among people and other consumer concerns.
Last week, Mercedes-Benz also announced that it was abandoning its plans to only sell electric vehicles after 2030 due to low consumer demand, which is a huge turnaround for the company from its three-year-old pledge to completely phase out selling gas-powered vehicles by 2030 and to only sell EVs.
“Customers and market conditions will set the pace of the transformation. The company plans to be in a position to cater to different customer needs, whether it’s an all-electric drivetrain or an electrified combustion engine, until well into the 2030s,” the company stated.
