16 years after the idea, Apple gave up on producing its electric car today.
- ” the decision to ultimately wind down the project is a bombshell for the company, ending a multibillion-dollar effort that would have vaulted Apple into a whole new industry. The tech giant started working on a car around 2014, setting its sights on a fully autonomous electric vehicle with a limousine-like interior and voice-guided navigation.” -Bloomberg
It seems top executives didn’t think a $100,000 Apple car had the profit margins the company expects.
- “Apple had imagined the car being priced at around $100,000. But executives were concerned about the vehicle being able to provide the profit margins that Apple typically enjoys on its products” – BBG
Many employees on the team working on the car — known as the Special Projects Group, or SPG — will be shifted to the artificial intelligence division. Those employees will focus on generative AI projects, an increasingly key priority for the company.
Apple went from a near -1% decline at session lows to up +0.85% because, well… “AI”.
AAPL (1m)
And that helped lift the S&P to a gain of +0.1%.
SP-500 (5m) – This is still a bullish-leaning consolidation.