After a decade, Apple is abandoning its "Project Titan" work on developing an autonomous electric car, according to people with knowledge of the matter.

The sources told Bloomberg that the tech giant disclosed it in a short meeting on Tuesday, surprising the almost 2,000 employees working on the project.

Apple Allegedly Cancels Project Titan

According to Bloomberg, Apple COO Jeff Williams and Kevin Lynch, a vice president in charge of the project, announced the company's decision.

Apple has reportedly spent billions of dollars in developing the autonomous electric vehicle. Previous rumors claimed that the tech giant wanted to design a fully self-driving car without pedals and a steering wheel.

Although Project Titan already cost Apple so much, Ray Wang, founder and chief executive of Silicon Valley-based consultancy Constellation Research told BBC that this "is a smart and long awaited decision."

"The market demand for EVs is not there, and AI is where all the action is," Wang added.

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What Will Apple Do to Project Titan Team?

Williams and Lynch said that many Project Titan employees will be laid off since the entire project will be stopped. However, those lucky enough to stay will be transferred to other departments.

According to Bloomberg, many employees on the car team, known as the Special Projects Group, will be transferred to the AI division headed by executive John Giannandrea, who will focus on the company's generative AI projects.

Others will have 90 days to find other positions inside the company or be let go. One of the sources told Bloomberg that the Project Titan team consists of some 1,400 employees. 

Tesla CEO Elon Musk has celebrated Apple's move. In a post on his social media platform X, the tech billionaire shared a saluting emoji and a cigarette.

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