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Was Apple's Car Project Doomed to Fail?

Kara Swisher and Scott Galloway discuss Apple scrapping its multi-billion dollar (and not-so-secret) plan to build an electric vehicle. Is Apple making the right move by getting out of the EV business? #pivot #podcast #apple #ev #electricvehicle #ai

Kara SwisherhostScott Gallowayhost
Feb 29, 20249mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Apple Kills Its Electric Car, Refocuses on AI and Core Strengths

  1. Kara Swisher and Scott Galloway analyze Apple’s decision to cancel its long-running electric car initiative, Project Titan, and reassign many of its 2,000 staff to generative AI work.
  2. Scott argues the move is strategically correct given slowing EV demand, brutal industry economics, and intensifying competition from Tesla and BYD, alongside the rise of AI as a higher-upside opportunity.
  3. Kara maintains that EVs and, eventually, autonomous vehicles remain the inevitable future, but agrees the market is more crowded and slower to mature than many predicted.
  4. They debate whether Apple should focus on vehicle software and AI integration instead of hardware, and explore the provocative idea of Apple buying Rivian to stay in the car market without building from scratch.

IDEAS WORTH REMEMBERING

5 ideas

Exiting the Apple Car now is a rational strategic pivot.

Galloway notes that when underlying data changes—slower EV adoption, squeezed margins, and fierce subsidized competition—leaders are obligated to change course rather than persist in a ‘suicide pact’ vision.

The EV market is still the future, but on a slower curve.

Swisher argues EVs and eventual autonomy remain inevitable, but consumer adoption is lagging optimistic forecasts, creating a ‘valley of death’ period where investments outpace demand.

Auto manufacturing is structurally unattractive for a high-margin tech giant.

They highlight that cars are low-margin, capital-intensive, and heavily subsidized, with most major players needing bailouts or government loans—misaligned with Apple’s typical high-margin model.

Apple’s real opportunity may be in software and AI, not the car body.

Swisher suggests Apple should double down on operating systems for transportation and on embedding AI deeply across its products to keep users locked into the Apple ecosystem.

Generative AI now competes directly for Apple’s scarce talent and capital.

With AI emerging as a massive platform shift, Apple appears to be redeploying Project Titan engineers to AI, betting that smarter devices and assistants will deliver higher returns than an EV line.

WORDS WORTH SAVING

5 quotes

A strategy and a vision is meant to be unifying, but not a suicide pact.

— Scott Galloway

When the data changes, as a good manager, you have the right and the obligation to change your mind.

— Scott Galloway

The key to strategy is not what you say yes to, but what you say no to.

— Scott Galloway

I still think it's the direction it's going, period... electric vehicles and then eventually autonomous vehicles.

— Kara Swisher

Apple's a tech company, and tech companies by definition need to grow.

— Kara Swisher (referencing Gene Munster’s view)

Apple’s cancellation of Project Titan and shift of talent to generative AICurrent realities and future trajectory of the EV marketCompetitive landscape: Tesla, BYD, traditional automakers, and RivianStrategic focus: where Apple’s capital and engineering resources create the most valueApple’s potential role in vehicle software, autonomy, and transportation systemsThe idea and feasibility of Apple acquiring RivianApple’s broader growth challenge and the need to enter new markets

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