Apple Inc. is canceling its ambitious project to build an electric car after a decade-long effort, according to sources familiar with the matter. The decision was internally disclosed by Chief Operating Officer Jeff Williams and Kevin Lynch, a vice president overseeing the project, surprising nearly 2,000 employees involved in the endeavor.

The project, known as the Special Projects Group (SPG), will begin winding down, with many employees being reassigned to Apple’s artificial intelligence division led by executive John Giannandrea. The focus for these employees will shift to generative AI projects, aligning with the company’s evolving priorities.

While the Apple car team comprises several hundred hardware engineers and vehicle designers, the fate of these employees remains uncertain. It is possible that they may seek positions within other Apple teams, although layoffs are expected, the extent of which is currently unclear.

Following the news report, Apple’s stock saw a positive response, with a 1% increase, reaching $182.63 by the close of trading in New York. The move was also well-received by investors, signaling a favorable outlook for the company.

The decision to terminate the project marks a significant development for Apple, bringing an end to Project Titan, a multibillion-dollar initiative that aimed to propel the company into the automotive industry. Initially launched around 2014, the project envisioned a fully autonomous electric vehicle with advanced interior features and voice-guided navigation.

However, Project Titan encountered challenges early on, leading to leadership changes within the team and eventual struggles that ultimately culminated in the recent decision to cease the endeavor.

The announcement has garnered attention from industry observers, with Tesla Inc.’s CEO, Elon Musk, expressing support for Apple’s move. Musk shared a post on social media, symbolizing solidarity with the decision.