According to sources familiar with the matter cited by Bloomberg, Apple is reportedly abandoning its decade-long effort to develop its electric car.

The Bloomberg report reveals that nearly 2,000 employees assigned to the Electric Vehicle (EV) team, known as the Special Projects Group, were informed about this decision by Apple executives Jeff Williams and Kevin Lynch.

It is stated in the report that most of the employees from the Special Projects Group will transition to Apple’s artificial intelligence division to focus on generative AI projects.

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Bloomberg also suggests that several hundred hardware engineers and car designers among them might have the option to seek other positions within Apple. However, there are expectations of undisclosed layoffs as well.

Apple recently announced a delay in the launch of its car to 2028 due to production challenges. The company reportedly shifted its focus from developing a fully autonomous vehicle to a design with limited self-driving features.

Before discontinuing the project, Bloomberg reports that Apple executives expressed concerns about the electric car’s profitability. Despite investing hundreds of millions of dollars annually in the project, Apple intended to price the vehicle at around $100,000.