Pottinger’s Post

This is the way it's done. A skunkworks project with a defined mission that leverages talent from the acquisition of a small company. In this case the Ford Motor Company skunkworks is about two years old and is based in Irvine, California. It includes engineers from Auto Motive Power (AMP), the EV power startup that Ford acquired in November 2023. My question now is "Is a skunkworks still a skunkworks when its discussed on a quarterly earnings call?" #Markknows #innovation #startups #startup #entrepreneurs #entrepreneurship #founder #founders #technology #EV #sunkworks #talent #acquisitions #M&A #leadership https://lnkd.in/eaw-cAuQ

Operating in the automotive space and in contact with many auto enthusiasts, I am often asked my opinion on investing in the common shares of auto companies, particularly the EV startups. This story provides yet another example of "buy the car, not the stock". It's not all that hard to build A car, but it's very difficult to manufacture CARS in volume. It also highlights what a remarkable, unlikely achievement Elon Musk produced with Tesla in an extremely short time period. Side note: while it is mentioned in the article, Henrik Fisker was only very briefly a consultant to Tesla. According to the new biography, Musk was not impressed with Fisker's ideas. https://lnkd.in/g3gwF-Be

WeRide Targets $5B Valuation for U.S. IPO WeRide the Chinese autonomous vehicle company, is setting its sights on the U.S. stock market with an anticipated public debut. After a year of navigating China's easing of its foreign IPO ban, WeRide is targeting a valuation of up to $5.02 billion in its initial public offering (IPO). In addition to the IPO, WeRide has secured commitments for a concurrent private placement, with investors pledging $320.5 million. Notable backers include Alliance VC, which will purchase $97 million in shares, and alongside GetRide App, and Beijing Minghong. #valuation #avcompany #ipo https://lnkd.in/eTP_nYTR

TESLA WANNABES RUNNING OUT OF ROAD ....1,028 unique views so far Three companies—Lordstown Motors, Proterra and Electric Last Mile Solutions—have filed for bankruptcy. Battery maker Romeo Power and charging firm Volta have been sold at a fraction of their valuations when they went public. Several of those remaining say they are working to reduce costs and have since raised capital. At least 18 EV and battery startups that went public in recent years were at risk of running out of cash by the end of 2024 as of their most recent filings, according to a Wall Street Journal analysis. They include companies such as Nikola and Fisker, which attracted investors with bold promises to transform the industry and fight climate change with their electric trucks and SUVs. The median stock among the companies that the Journal evaluated is down more than 80% from its market debut, and even further from its peak. The slide has wiped out tens of billions of dollars in market value in just a couple of years. “It was by far the most insane bubble I have ever seen,” Gavin Baker, chief investment officer at Atreides Management. NOTE: Nearly all of the struggling companies went public through special-purpose acquisition companies. SPACs are alternatives to traditional initial public offerings that surged in popularity during the pandemic. UNLIKE IPOS, SPACS LET STARTUPS MAKE UNCHECKED PROJECTIONS ABOUT HOW QUICKLY THEY COULD GROW. https://lnkd.in/eswM8nwQ

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.

ELECTRIC VEHICLES GAINING MOMENTUM: UPDATED ANALYSIS OF IPOs/SPACs OF EV-FOCUSED NEW OEMS SINCE 2019 & OF THEIR STOCK PERFORMANCE. While Tesla has developed exceptionally well since its IPO, the recent months certainly have been a "Come to Jesus" moment for various start-ups and New OEMs globally, and a few of them had even to exit the industry. Here is a very interesting & comprehensive analysis compiled and recently released by German consultancy Berylls. #automotive #automotiveengineering #automotivetechnology #automotiveindustry #EVsales #EVadoption #ev #evs #bev #bevs #electricvehicle #electricvehicles #electricmobility #emobility #greenmobility #sustainablemobility #urbanmobility #smartmobility #futuremobility #newmobility #mobility #startup #newoem #ipo #spac #stockmarket #stockperformance #tesla #rivian #canoo #lucidmotors #lucid #faradayfuture #nio #xpeng #vinfast #fisker #polestar #global #world

📢 Tune In Alert! 📢 Don’t miss REE Automotive’s Chief Business Officer, Tali Miller, today on Bloomberg Intelligence at 11:42 AM EST. The discussion will focus on how EV startups like REE Automotive can collaborate with OEMs to create the best vehicle possible and accelerate technological advancements for consumers. This year, REE became the first company to FMVSS certify a fully-by-wire vehicle. The Rivian/Volkswagen deal highlights how partnerships between legacy OEMs and EV startups are crucial for rapidly and cost-effectively developing software-defined vehicles. Don’t miss this insightful conversation! Tune in here: http://bit.ly/3vTiACF #ThisIsREE #PoweredByREE #electricvehicles #automotivetechnology #commercialvehicles #softwaredrivenvehicles #nextgenmobility #sustainability

The EV bloodbath is here: Tesla's meteoric rise attracted a host of US based EV competitors in the past 10 years, which have raised billions in investment capital. In the past 2 years, more than $10B in market cap has been eroded as at least 18 publicly traded EV companies teeter on the edge of bankruptcy. Great reporting by Amrith Ramkumar and Shane Shifflett of The Wall Street Journal. (to the extent that automotive is a global business, there are EV start-ups in China that seem poised to give Tesla a run for the money, but it remains to be seen whether the markets geographically fragment) https://lnkd.in/eMqfeFpT

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

Critical Thinking #10 "How do you run a car company?"   For one, do not do it like Fisker Inc. – they just filed for bankruptcy.   In 2012, I was keenly watching a race for a new revolution – for the return of the electric car. The underdog Tesla Motors released the Model S electric sedan, proving to reluctant industry giants that you can make a pure electric vehicle that could be driven every day.   However, the young Tesla had another foe: the younger Fisker Automotive, founded by famed car designer Henrik Fisker, offered the Karma plug-in hybrid. With a more trusted hybrid concept and far more sensational looks, everybody had high hopes for Fisker - including Leonardo DiCaprio and Times Magazine.   In reality, the Fisker Karma was compromised. It was heavier, more expensive, significantly less spacious, and had worse range than an equivalent Model S. Due to a chaotic development, the Karma became a reliability nightmare: Consumer Reports had a press car that bricked itself during testing and several customer-owned Karmas burned down. Yet, Fisker Automotive was burning through too much of its generous US government loan to fix anything. Fisker Automotive died in 2014 after its sole battery supplier went bankrupt.   But in 2016, Henrik Fisker created the new Fisker Inc., and in 2020, they revealed the pure electric Ocean SUV.   Yet, the Ocean turned out to be as problematic as the Karma. What mistakes did they make?   1)     Chaotic leadership Employees spoke to Techcrunch about how Henrik and his wife, CFO Geeta Gupta-Fisker, hindered company operations and employee morale. Using a chatbot in lieu of a customer service division, failing to pay a customer service contractor, not stockpiling spare parts to save money, not establishing a supplier QA team sooner, and requesting last-minute aesthetic designs despite tight deadlines. The company even lost track of 16 million USD in customer payments.   2)     Over-reliance on outsourcing In order to reduce costs, Fisker outsources their components and manufacturing. Management was confident in the inherent reliability of EV motors and their expert contract manufacturer, Magna Steyr, but without a QA team, Fisker Inc did not have full control over quality. Over 100 Oceans reportedly suffered power loss while driving.   3)     Lack of IP Fisker’s EV architecture is based upon an ecosystem owned by Magna Steyr; Fisker cannot outsource their own technology or valuable skills as another source of revenue, which can be critical for start-ups and even small legacy brands. An example is Lucid Motors, who will supply their proven Starfleet-rivaling motors to other luxury car brands. Currently, Henrik Fisker is trying to sell the company's assets to save it from a permanent death, but his legacy may never recover.   What would you have done differently? #criticalthinking #criticalthinkingacademy   https://lnkd.in/gEdV8y-e