The joint venture between a legacy giant and an EV startup will be a fascinating test of the industry’s effort to embrace technological change, James Surowiecki writes.
The Atlantic’s Post
More Relevant Posts
-
Fisker’s collapse would add to the pileup of troubled and failed automotive startups that rode the wave of investor zeal for EVs during the pandemic. These young companies raised billions of dollars with bold promises to upend the more than century-old car business. Investors also were game to bet on finding the next Tesla, the EV maker with an eye-popping share price. Fisker’s downfall underlines the stakes for cash-burning automotive upstarts, which are trying to break into a capital-intensive, low-margin industry dominated by a handful of deep-pocketed players. These young car companies have innovative ideas but struggled with the fundamentals of making and selling vehicles at a profit. Meanwhile, Americans’ interest in buying battery-powered vehicles has cooled.
A Famed Car Designer’s Doomed Attempt to Challenge Tesla
wsj.com
To view or add a comment, sign in
-
The transition to electric, automated, and connected vehicles is too difficult for traditional automakers. The path to becoming a global automaker requires too much money for many auto startups. Teaming up with a traditional automaker can be a smart move. But like any marriage, choosing the right partners is key.
VW will invest up to $5B into Rivian to form joint venture for next-gen EVs
https://electrek.co
To view or add a comment, sign in
-
🔋 Electric vehicle startup Fisker Group Inc. has filed for Chapter 11 bankruptcy protection, becoming the second EV maker to do so in the past year. Facing market and macroeconomic challenges, Fisker has decided to sell its assets as part of its restructuring plan. This filing highlights the ongoing struggles within the EV industry, which is finding it hard to expand beyond early adopters. Learn more about Fisker's journey and the broader implications for the EV market. #ElectricVehicle #FiskerGroup #EVIndustry #EVMarket
Fisker Becomes 2nd EV Maker to File for Bankruptcy in Past Year
autobodynews.com
To view or add a comment, sign in
-
CVO Finding Fasteners Inc. | Co-Founder Battery Sealing Solutions |Transforming EV and Renewable Energy through Innovative Solutions
How much money has been spent on failed #EV startups? $150 billion? Fisker and Canoo may be the next to go 🤯. Apple announced this week that it was giving up on its EV dream 😴, and it’s spent close to $20 billion trying to fund its production. Mr. Fisker is on his second attempt after spending almost $2 billion on another effort in 2012, now Karma Automotive. https://lnkd.in/g3SXwW32 Faraday Future also made two attempts, with one going bust in 2017 and trying again for a SPAC in 2020. $2 billion was invested in the first go-round. https://lnkd.in/gAwfA_T6 Sono Motors and Lightyear went bust last year with another billion between them. https://lnkd.in/gdYBc_2i British effort Arrival filed bankruptcy last month after over $2 billion was spent. https://lnkd.in/gxSdhbaR With legacies like #Ford and Mercedes-Benz AG announcing drastic EV cutbacks this week, what is the future of western EVs? Rivian and Lucid Motors are the only two left standing outside Tesla. Neither will go bust as one will get bought before that, and the other has the whole weight of the Saudi government behind them. It makes you wonder 💭 whether the West needs a new approach that involves government support. Thanks for the article - Tim Levin https://lnkd.in/gybdXpzs
Fisker Warns It May Run Out Of Money In The Next 12 Months
insideevs.com
To view or add a comment, sign in
-
Tritium® has appointed administrators 13 months after it listed on NASDAQ via a SPAC deal. That should have given the company decent runway, but operating losses/cash burn has been running close to $100m a year - and since the collapse of SVB a year ago, equity financing has been as tough as anyone can remember. As always with these things, there will be some important lessons to learn - whether they are new ones remains to be seen. Meanwhile, don't let this distract you from the main story - the rise and rise of hybrids and EVs (for more, see linked article), not to mention all the downstream activity in EV supply chains, including the recent proposed bid for Anglo American . https://lnkd.in/eMmMpyAv #EVs #Copper #Impact #startups #InvestmentBanking
Top EV Carmakers By Sales In Q1 2024: Tesla Vs. BYD
insideevs.com
To view or add a comment, sign in
-
The small and affordable EVs we lost in 2023 #startup #fundraising #angelinvestor #investments #VentureCapital #vc #Entrepreneurship #venturefunding #investing #TechNews #Innovation #technology https://lnkd.in/gBYwakpT
The small and affordable EVs we lost in 2023 | TechCrunch
https://techcrunch.com
To view or add a comment, sign in
-
These Are The Automakers You Think Will Go Bankrupt Next: As the automotive world moves toward an electrified future, the industry is arguably changing more than it has in decades. New startups have emerged to challenge the legacy automakers, and billions of dollars are being invested in research and development. It hasn’t exactly been smooth sailing for everyone involved,… Read more... #car #cars #awesome
These Are The Automakers You Think Will Go Bankrupt Next
jalopnik.com
To view or add a comment, sign in
-
The electric vehicle transition is turning into a brutal story of haves and have nots. Rivian's stock is down an extraordinary 28% this morning; Lucid's is down 20%. Both electric-vehicle startups gave disappointing production guidance for 2024. Meanwhile, Mercedes-Benz shares are up 6% after it said it would use excess cash—yes, most old-fashioned automakers have excess cash—to buy back stock. Legacy auto isn't in any easy spot, but it certainly beats that of EV startups. My latest column for WSJ Heard on the Street: https://lnkd.in/eJK32ZMG
Mercedes-Benz vs. Rivian: The Revenge of Legacy Auto
wsj.com
To view or add a comment, sign in
-
´Function + Feature: ‘Re-thinking renewables; climate change does not only mean intense heat; key is unpredictable weather patterns. AI solutions…….#AIsolutions
A fleet of electric-car startups is struggling to stay in business
Think Tesla is in trouble? Pity even more its wannabe EV rivals
economist.com
To view or add a comment, sign in
-
I dedicate this WSJ story to state economic development officials in Illinois, Georgia and North Carolina, who granted large incentive packages to electric vehicle startups. History will ultimately show what complete wrongheaded moves those were. Add Fisker is the growing pileup of troubled and failed EV startups that rode the wave of investor zeal during the pandemic. Fisker, having burned through nearly all its cash, told employees that June 28 would be their last day at work if a deal isn’t found to revive the company. The California-based company was among a group of young companies that raised billions of dollars with bold promises to upend the more than century-old car business. Investors also were game to bet on finding the next Tesla, the EV maker with an eye-popping share price. Fisker’s downfall underlines the stakes for cash-burning upstarts, which are trying to break into a capital-intensive, low-margin industry dominated by a handful of deep-pocketed players. (For what it's worth, Rivian Automotive has burned through about $17 billion to date.) The truth is that these young car companies cannot and will not master the fundamentals of making and selling vehicles at a profit. All of them, and I mean all, will fail simply because they lack the financial wherewithal (and manufacturing experience) to succeed long-term. The fact is that the automotive industry is a big boy's game. Only the legacy automakers, having established dealer and supply chain networks along with revenue streams related to internal combustion models to underwrite their EV ambitions, have a chance of succeeding in making the transition to electrification. Meanwhile, Americans’ interest in buying battery-powered vehicles has cooled, which only exacerbates the situation for the upstarts. What is truly pitiful is that economic developers in Georgia, North Carolina and Illinois didn't do proper due diligence. Had they done so, Georgia would never have offered a $1 billion-plus incentive package to Rivian, and North Carolina would not have done the same for a joke of company called VinFast, a Vietnamese-based carmaker with virtually no track record. Construction work on sites in both states has since been halted. Why heads haven't rolled is beyond me. Incredible still is that Illinois is throwing good money after bad by subsidizing Rivian with a $827-million incentive package to retool its plant in Normal, Ill. As of May 1, Fisker sold 6,500 vehicles. Factory production has stopped, and the company is selling off its remaining stock to dealers and auction houses. Fisker shares, worth $28.50 at their peak, now trade over the counter at about 4 cents each.
A Famed Car Designer’s Doomed Attempt to Challenge Tesla
wsj.com
To view or add a comment, sign in