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Apple Shifts Gears: Halts Electric Car Plans Amidst Focus on AI and Market Speculation

In a surprising turn of events, Apple Inc. has reportedly decided to halt its ambitious plans to enter the electric car market, according to recent reports from Bloomberg.

This decision marks a significant shift in the tech giant's strategy, signaling an end to its secretive efforts to rival Tesla (TSLA). With thousands of employees involved in the project under the Special Projects Group, Apple's retreat raises questions about its future direction and priorities. Amidst this development, market analysts speculate on the implications for Apple's stock and its potential for new record highs.

apple cars project ends in a ditch

Apple Cars Project Ends In a Ditch
Apple (AAPL) has reportedly decided to halt its endeavors in the electric car sector, as per Bloomberg reports. This decision suggests the end of Apple's secretive attempts to develop a car to compete with Tesla.

The initiative, managed by Apple's Special Projects Group and involving thousands of employees, never quite aligned with Apple's primary focus on electronics and online services. Moreover, it raised questions about potential manufacturing partnerships for the envisioned car.

Rumors of Apple's interest in car production emerged as early as 2014, following the recruitment of automotive experts from various car manufacturers. While Apple kept its plans under wraps, it operated a program featuring autonomous cars equipped with sensors, navigating the streets of the San Francisco Bay Area under the supervision of safety drivers.

Over time, the project underwent several reorganizations, including staff reshuffles in 2019, where some employees were reassigned within the company. It's anticipated that some personnel from Apple's car division might transition to a team focused on generative artificial intelligence.

Despite this setback, Apple maintains involvement in other automotive-related ventures, such as its CarPlay software aimed at enhancing in-car infotainment experiences.

Upon the release of this news, Apple's stock experienced a modest 1% increase. The company, however, declined to provide any comments on the matter.

Price Analysis
Apple Inc. has shown significant performance, boasting over 20% year-over-year increase. Nevertheless, the stock has seen a 6% decline in 2024. Currently, it is on track for its third consecutive daily decline, hovering around $182.50 per share, slightly below the $166 level, November 2023 lows.

AAPL reached a record high of $199.62 on December 14. Given its historical bullish trend line, analysts speculate that Apple might soon achieve another peak.

The stock is currently holding its 200-day moving average signals potential upward movement. Past data suggests that similar instances in the past three years led to an average gain of 12% within one month.

Considering the relatively low pricing of options, now could be an opportune moment for speculation. Apple stock's Schaeffer's Volatility Index (SVI) sits at 19%, lower than 81% of readings over the past year, making options more affordable.

Apple's decision to abandon its electric car endeavors reflects a strategic pivot towards prioritizing other ventures, particularly in the realm of generative artificial intelligence. While this move may disappoint enthusiasts eagerly anticipating an Apple-branded vehicle, it underscores the company's commitment to focus on areas where it can leverage its strengths effectively. As Apple navigates these shifts, investors closely monitor market trends and speculate on the implications for the company's stock performance, poised for potential new record highs in the future.

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