A deep dive into Apple's failed EV project: indecision, prototypes, and partnership or acquisition talks with Mercedes-Benz, BMW, VW, Tesla, McLaren, and others
Tim Cook shut down plans to acquire Tesla before cycling through a junkyard's worth of self-driving designs over the past decade.
Bloomberg
Context & Ripple Effects
Apple’s automotive effort had long relied on outside-industry options: a Volkswagen van arrangement for autonomous employee shuttles sat alongside efforts to explore broader relationships with BMW and Mercedes-Benz. The latest account makes those discussions part of a longer search for a viable route into vehicles rather than a settled product plan.
It also follows reporting that internal disputes over a self-driving car versus a conventional EV persisted for years. The combination of changing designs and unconsummated partnership or acquisition paths explains why the project’s end matters beyond any single prototype.
First-order effects
Apple’s failed project closes off a decade-long vehicle initiative that repeatedly changed its autonomy and product assumptions.
Tesla, BMW, Mercedes-Benz, Volkswagen, McLaren and other companies approached by Apple lose a potential transaction or vehicle-development counterpart; Tesla also remains independent after Apple abandoned acquisition plans.
Second-order effects
Apple’s exit removes a well-resourced prospective entrant from the EV and autonomous-vehicle field, while leaving incumbent automakers and Tesla to pursue their own technology and partnership strategies.
The record of talks across manufacturers highlights how an automaker partnership can become a gating decision for a consumer-electronics company that lacks an established vehicle platform.
Third-order effects
If similar projects continue to stall, automotive entry is likely to favor companies that can commit early to a product definition and a durable division of responsibility with manufacturing partners.
The episode points to a structural limit on transferring consumer-device development practices into vehicles: safety, production, autonomy and partner control must be resolved together, not sequentially.
The trend: The failed effort is one data point in the broader trend of technology companies discovering that EV and autonomous-vehicle ambitions require deeper industrial alignment than standalone hardware launches.
Apple's M&A head had multiple talks around 2014 w/ Musk about buying Tesla before Tim Cook scuttled the idea. Apple also held talks w/ Mercedes-Benz about letting the German automaker build its car. Pretty remarkable how far and wide Apple casted for help on this project which …
NEW: How Apple Sank About $1B a Year Into a Car It Never Built - The inside story of the Apple Car, from what it looked like, to its features, to the indecision and technical challenges that brought it down and how it traces all the way back to Steve Jobs. https://www.bloomberg.c…
@markgurman there's gonna be some really crazy stories from the people working on this in the future. I can't wait to see what kind of cool stuff they sadly threw away.
Apple worked on at least 5 different car designs, including a 2020 prototype that looked like a Canoo EV, with sliding doors, Boeing-like auto-tinting windows, private jet-like seating, a giant TV, and whitewall tires. Tim Cook fell in love with it. https://www.bloomberg.com/...
The idea for an Apple Car was first pitched by Steve Jobs after the launch of the iPhone. He proposed buying GM. 6 years later was the first step in Project Titan: exploring a deal to buy Tesla. Tim Cook nixed that. Then the real work began. https://www.bloomberg.com/...
“The ultimate plan was a living room on wheels where people who no longer needed to drive their cars could work or entertain themselves with Apple screens and services instead.” Apple is run by dreamers. https://www.bloomberg.com/...
Whether it was Kevin Lynch or some other executive, whoever convinced Tim Cook that L5 wasn't in the cards any time soon should have his statue proudly erected at Apple Park. https://www.bloomberg.com/...
“The new design also incorporated a more traditional automotive interface: a steering wheel and pedals. “They finally smartened up,” says an Apple executive. “I was like, ‘Guys, you could have done this 10 years ago!’” 😂😂😂 https://sixcolors.com/...
Seems like Apple's car project failed for many reasons, including that it couldn't find a way to introduce a new interface for the car. Apple always creates new “Revolutionary User Interfaces” for new operating systems. “Last year, Apple pivoted one last time. Designs were... [im…
@jacksonhvisuals @markgurman if you saw what kind of polished cool stuff gets thrown away at Apple internally it'd drive you nuts. Sad. but also the price of polish.
If the Apple car's self-driving system failed, there were some backup options: an Xbox-like controller to drive like you're in a video game, a virtual steering wheel as an iPhone app — and, notably, a command center where Apple could drive you remotely. https://www.bloomberg.com/…