Apple cancels plans to produce electric cars

Apple has scrapped plans to produce electric vehicles (EVs) a decade after the iPhone maker was rumored to be working on the project, writes the BBC.

The company has never publicly acknowledged the project, which involved about two thousand people.

Many employees from the project will be transferred to the iPhone maker's artificial intelligence (IA) division, according to Bloomberg News.

The Apple car team was reportedly known as the Special Projects Group as part of CEO Tim Cook's project.

While spending billions of dollars on research and development, Apple was initially rumored to be working on a fully autonomous vehicle without a steering wheel or pedals.

The team realized it was still years away from producing a vehicle.

"This is a smart and long-awaited decision. The market demand for EV is not there and AI is where all the action is," said Ray Wang, founder and chief executive of Silicon Valley-based consultancy Constellation Research.

Apple has explored other possibilities beyond the iPhone and computers, including the recently launched Vision Pro virtual reality headset.

Demand for electric cars has fallen in recent months as borrowing costs remain high, making the market increasingly competitive.