Kantrowitz says it’s hard to trust Apple a day after electric car news

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on Feb 28, 2024
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  • Apple has cancelled its electric car project that it spent about $10 billion on.
  • AFL-CIO Index Funds urged $AAPL today to submit a transparency report on AI.
  • Big Technology founder Alex Kantrowitz shares view on both developments.

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Apple Inc (NASDAQ: AAPL) giving up on its long-standing plans of launching an electric car hints at a “cultural issue”, says Alex Kantrowitz – the founder of “Big Technology”.

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Kantrowitz shares view on Apple electric car news

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The tech behemoth spent about $10 billion on its car project.

Still, it failed to come through and is now considering adding some members of that team to one working on generative artificial intelligence.

While some, including Wedbush Securities senior analyst Dan Ives, dub Apple Inc pulling the plug on its electric car in favour of AI the “right move” – Alex Kantrowitz questions “where is that culture coming up short” within the iPhone maker that made it cancel its EV project.

Apple stock is now down close to 8.0% versus its year-to-date high.

What’s happening at Apple on the AI front

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Apple shares are in focus at writing also because AFL-CIO Equity Index Funds urged the multinational today to submit a transparency report on its use of artificial intelligence.

It also wants the Nasdaq-listed firm to disclose ethical guidelines it has adopted relating to AI. On CNBC’s “Worldwide Exchange”, Kantrowitz said on Wednesday:

I think it’s an important ask. Without transparency, it’s going to be tough for users to trust these companies.

Note that Apple shareholders have already rejected the aforementioned labour-backed request. The news arrives only weeks after the tech titan was reported still interested in eventually launching a foldable iPhone. Wall Street currently has a consensus “overweight” rating on $AAPL.  

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