Apple has decided to stop working on its electric car, according to a source who knows about it, as reported by Reuters on Tuesday. This comes ten years after Apple first started the project.

The cancellation marks the end of a plan that could have helped Apple enter a new industry, similar to the success they had with the iPhone.

The project faced challenges along the way and has now been halted at a time when many carmakers are reducing their investments in electric vehicles due to a drop in demand.

According to Bloomberg News, some employees who were working on the electric car project will now join Apple’s artificial intelligence (AI) division.

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Apple declined to comment:

“If it is true, Apple will put more focus on GenAI and that should give investors more optimism about the company’s efforts and ability to compete at a platform level on AI,” said Ben Bajarin, CEO of consulting firm Creative Strategies.

Apple hasn’t made any big moves in AI like other tech giants, which worries some people that they might be falling behind. Their stock gains last year were the smallest compared to other big companies.

Microsoft is now the most valuable company, overtaking Apple, as Apple deals with lower demand for its products, especially in China.

Also, because of high interest rates, the demand for expensive electric cars has slowed down, leading to job cuts and less production in the industry.