Apple Drains EV Resources For AI

After ten years of research and development, Tim Apple is finally pulling the plug on Apple’s electric vehicle (EV) project. Because as we all know, EVs have lost their luster and given way to the business world’s new savior…artificial intelligence (AI). 😇

Bloomberg broke the news today, saying the tech giant disclosed the strategy shift internally and surprised the nearly 2,000 employees working on the project. Executives told staffers the project would begin winding down and that many of the car team’s employees would be shifted to its artificial intelligence division, focused on generative AI. 

Tesla CEO Elon Musk subtly celebrated the move with a post on X after years of doubting the company’s efforts would bear fruit. Shareholders also applauded, with the 1-minute chart below showing a price surge after the announcement, with the stock holding onto its gains into the close. 

While some investors are happy that Apple is shifting resources to the new AI “gold rush,” others view them throwing in the towel on electric vehicles as a contrarian signal for the space. Electric vehicle stocks, including Tesla, have been hit hard over the last two years amid demand challenges. đŸĒĢ

That’s caused many automakers to throttle their approach to the space, with traders waiting for a big news event like this to help form a short-term bottom in these stocks. We’ll have to see if their contrarian view pays off or if Apple’s retreat is just another data point signaling that the industry’s problems are here to stay. 🤷

One thing’s for sure: this move sums up the current market environment as well as anything else. đŸ˜ĩ‍đŸ’Ģ

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