If there's one phrase that captures the mood and theme of 2024 — at least in the transportation sector — it's “business.” Legacy automakers have their EVs or break-out strategy; The startup has spun off, and some Silicon Valley VCs and executives have adjusted their views on the changing political landscape in which they now play.
Jaguar has embarked on a new path of transformation. Name change. It got a lot of attention — and set social media on fire for at least a few days. GM has slowed its EV plans and forced it to change lanes on software because of problems with the Chevy Blazer EV, which has positive developments. But the automaker's most significant change is its decision to stop funding the Cruise robot.
Everywhere we look, founders; VCs and automotive executives are taking advantage of changing consumer demand and, in many cases, are changing course simply to survive.
Here are the biggest topics and stories about transportation in 2024.
Autonomous vehicles: Pivots; survivors; and scale
From 2016 to 2020 – The tumultuous years of autonomous vehicle technology are long, and the hype cycle is taking us through disappointments. Including a handful of AV startups Ghost autonomy versus Phantom autowhich has already gone astray; took their last breath in 2024. Other AV startups have taken cues from their brethren in other sectors. Turn to the defenseBecome official dual-use companies. Others, like TuSimple, have steered away from autonomous technology development almost entirely; Instead they moved to embrace *cheques*. AI animation and gaming..
The path to commercial robotics remains tumultuous. GM has decided that the Cruise robotaxi development program is no longer funded.; The automaker will now use that technology and talent to enhance its three-arm advanced driver assistance system and eventually introduce self-driving vehicles.
But AVs are on the rise, boosted by newfound interest in the AI industry and an end-to-end approach to autonomy (just ask!). Stray) Waymo versus ZooxTwo well-funded AV companies are still on the path to commercial robotics. There's Tesla, which made its debut this year. Cybercab prototype Production is scheduled to begin in 2025 or 2026. CEO Elon Musk also promised to release “unsupervised FSD”. Start the robotaxi service. We're taking those promises with a lot of skepticism, given Musk's enthusiasm for missing the deadline, either in California or Texas next year.
Other AV must-reads of 2024:
EVs are being tested.
Legacy automakers like Ford and GM have spent billions of dollars investing in U.S. battery manufacturing plants to boost their electric vehicle lines and stay ahead of supply chains. EV sales hit a record high this year, boosted by the Biden administration's EV tax credits. But automakers and investors fear sales of electric cars. 8.9% of total car sales In the third quarter, they didn't pick up at the pace they were hoping for. Tesla even saw its own profits drop at the start of the year, and Musk noted that automakers are pulling back on EVs. Pressure from hybrids. That decline could continue through 2025 with the incoming administration's plans to cut the EV tax credit.
Meanwhile, in the field of EV startups; The SPAC model has proven unsuccessful for driving long-term economic growth. We recorded. The messy fall of Fisker What founders' imaginations crumble under — including how startups leave Total chaos. A contract was made with American Lease, the company that bought Fisker's fleet, to help get the owners. Facilitating recalls..
Canoo struggled to maintain enough cash to operate and began in December. furlough workers. A startup's financial problems may stem from unsustainable spending habits. Double Canoo's annual revenue. On CEO Tony Avila's private jet or acquiring his assets. Bankrupt peer access.
Although Faraday Future raised more than $1 billion when it merged with the SPAC in 2021. Palantir, a data mining company, is sinking so fast that it now owns a data mining company. 8.7 percent of shares in the company; Faraday was unable to pay for services rendered.
One of the new EV players that didn't make a public appearance from a special-purpose acquisition merger is Rivian. Rivian hasn't had the smoothest run since its record-breaking IPO, though. The EV maker is on pace to hit 2024, including a series of defects and lawsuits. Harassment of top executives..
Rivian unveiled its next-generation R2 SUV and the surprising R3 hatchback in March. summer Rivian's Way of Survival It has to do with being able to sell its revamped R1T pickup and R1S SUV at a profit enough to outlast its cheaper R2 SUVs on the road. Rivian even took a step. $6.6 billion in loans Despite an agreement to restart production at its Georgia plant in a secret settlement with the United Auto Workers Union.
As Musk struggled to hold his own, Tesla faltered. $56 billion pay package Through sheer determination and investor loyalty. Reportedly issued by the car manufacturer. Termination of office during the yearaxed its The entire Supercharger teamHe oversaw the scrapping of plans to build a $25,000 EV. Seven Cybertruck recounted.were revealed. Robot prototype.
Other EV must-reads of 2024:
EVTOLs Still attracting investors.
2024 is the year of big ambitions for the electric vertical take-off and landing vehicles industry. Almost every week it feels like Joby Aviation and Archer Aviation are announcing plans to launch commercial electric air taxis starting in 2025.
It's been a year of massive fundraising as both companies seek to raise more money to achieve Federal Aviation Administration certification and start commercial air taxi services by 2025. Joby, Joby, for example, received a first guarantee. 500 million dollar bag It raised $222 million from Toyota. $300 million public offering. Charter not long ago. It earned $430 million. Immerse yourself in defense in partnership with Anduril — the theme we look forward to in 2025 Defense technology is accelerating.. versus Beta Technologies raised Series C for $318 million..
There are a number of partnerships between eVTOL startups and traditional airlines — like Beta's recent win with Air New Zealand — and the US; There has also been the development of vertiports in major urban areas in Europe and Asia.
Not all startups are so lucky, as companies burn capital and fail to raise more funding. German eVTOL startup Lilium has filed for bankruptcy without raising enough capital to continue. In December, the company It closed and laid off 1,000 workers.But it looks like they got one. Last minute lifeline From an investor. stay tuned.
2025 is the year we'll see if the remaining companies can secure the proper FAA approval and start a business out of eVTOLs.
Here are some other eVTOL must-reads of 2024:
Micromobility Shaking forward.
Shared micromobility has long been prevalent. This year's collection, We saw the last exits of the pillars and some of the survivors.
Tier and Dott are finally combined.And Lime continued its steady path toward sustainability and market dominance, if not consistent profitability.
VanMoof's bankruptcy in 2023 revealed how difficult it is to scale a new e-bike business, despite consumers' love for attractive, sleek e-bikes. Cake filed for bankruptcy. At the beginning of the year, versus Onyx Motorcycles It was on the verge of bankruptcy itself when its 37-year-old owner died suddenly. Cake and Onyx have new opportunities to survive in 2025.
Some startups have managed to find a way to dominate the e-bike industry. Look at Joco. The startup defied the odds and was able to transform its docked e-bike rental service for delivery workers. A profitable businessand even branched out into building battery charging boxes.
Here are other micromobility must-reads of 2024: