Dyson Kills EV Program

Home appliance maker Dyson Ltd. has decided to discontinue its ambitious plans to launch an electric car in 2021.

In a message to employees, founder James Dyson says the company no longer believes the EV can be commercially viable. The decision reportedly was influenced by increasing competitive pressures, including accelerated electrification efforts of traditional carmakers and the financial struggles of Tesla Inc. and various EV startups.

Dyson, which confirmed the EV program in September 2017, had 500 people working on the car and committed to invest £2.5 billion ($3.1 billion) in the effort. A year ago the company announced plans to construct a factory in Singapore to build the EV.

Hailing the EV’s underlying technology as “fantastic,” Dyson says the company will continue to develop solid-state batteries, robotics and advanced manufacturing systems related to the program. Dyson aims to apply the technology to its own consumer electronics products and possibly license it to other companies, although initial efforts to do so have come up empty.