According to Bloomberg News, Apple (NASDAQ:AAPL) has reportedly dialed back the features for its upcoming electric vehicle (EV) and delayed the car’s launch to 2028 at the earliest.
Notably, the company has apparently shifted its focus from a fully autonomous vehicle to a more modest design, aiming to introduce an EV with basic driver-assistance features, marking a significant departure from the previous goal of releasing a self-driving car with advanced capabilities by 2026.
The project, codenamed Titan and T172, has been marked by leadership changes, multiple rounds of layoffs, strategic shifts, and numerous delays since its inception in 2014. Despite the challenges, the development of an Apple car remains a high-stakes venture, representing a potential new category for the tech giant and a chance to reinvigorate sales growth.
Initially envisioning a Level 4 or Level 5 autonomous vehicle, Apple has now scaled back its plans to a Level 2+ system. This means the car will offer basic driver-assistance features, requiring human attention and intervention when necessary, similar to Tesla's (NASDAQ:TSLA) Autopilot system.
The decision to shift from more advanced self-driving capabilities to a less ambitious design is seen as a pivotal moment for the project, with the company facing the choice of delivering a product with reduced expectations or reconsidering the project's viability.
Apple's struggles in the automotive sector have led to a reevaluation of its approach, acknowledging the challenges in developing a fully autonomous vehicle in the near term. The company is now working on forging partnerships with manufacturing firms in Europe to bring its scaled-back EV to market.
The revised plan includes the possibility of introducing a Level 4 autonomous system in a later iteration of the vehicle, expanding its autonomy capabilities under specific conditions.
Internally Apple, the recent shift in focus is viewed as a critical juncture for the company's car project. The internal sentiment suggests that Apple is at a make-or-break moment — it must either successfully deliver the product with scaled-down expectations or face the likelihood of top executives seriously contemplating the project's continuation, Bloomberg’s report says.
There remains a possibility, however, that Apple could once again alter its course and adopt a new strategy.