Industries like autonomous vehicle technology and electrification were once darlings of the VC and corporate world. The two technologies promise billions of dollars in revenue — and a new way for automakers to make money beyond selling cars.
With such few exceptions, those VC-money-printing days are long gone for AVs. Waymo versus Stray. But as 2024 begins, Even quieter than before, there are still EV vibrations in the air.
Now that 2024 is approaching, it's safe to say the buzz is getting louder, as many EV startups are stalling and automakers are revising their investment plans.
EV demand will begin to moderate in 2023 and sales volume will increase overall, but the rate of growth will exceed expectations. In 2024, automakers responded. Ford carried out his plans.That includes abandoning plans to build an electric three-row SUV and opting to power those future cars with hybrid powertrains. GM, which has already scaled back EV spending in 2023, recently made more moves in 2024. offloading its shares to its joint venture partner LG Energy Solutions nearing completion of the Ultium Cells battery cell plant in Lansing, Michigan. Stellantis and Mercedes Programs are on hold. In EV battery factories.
Toyota's often criticized approach Slow down the EVs. Now it seems that the preference for gas and hybrid cars will continue.
The results are not good for EV startups either.
Meanwhile, AVs had their hypey moment in the VC sun a few years ago: self-driving cars are tough; Unable to prove the business model; Those backers may not have the patience for a long pre-season. Earnings.
In 2019 and 2020, the first wave of sector consolidation has gone through. Some AV (and EV) startups have combined with special purpose acquisition companies to find the public market capital needed to commercialize their technology. It's joined by other big-name automaker backers. There were setbacks for both strategies in 2022 and 2023, the pivot that was the final scramble for survival.
AV startups that once focused on the opportunities in self-driving cars are moving their technology to warehouses, They tried to use it in mining and agriculture. But it's clear that those fields are already fiercely competitive. Because others stick to their original mission but become dual-use companies. Defense technology is hot these days.
In short, 2024 is the time to say goodbye to weak startups and corporate organizations to take a hard look at what they're using and say, “It's time to move on.”
Apple car project
We didn't even know about Apple's not-so-secret car project. Still, we all felt the loss. We've been hearing about the promise and vague plans for an Apple electric and (perhaps) autonomous car for a long time—perhaps a decade after the first plans leaked. Apple officially released in 2024. The car project was cancelled..
I can't wait for 2025 and there are rumors that this project will be restarted.
upon arrival
This EV startup, which wants to use microfactories to produce its commercial electric vans and buses, was once valued at more than $13 billion and is backed by Hyundai and UPS. The company went public in 2021 via a SPAC and is in trouble in 2023 — $300 million lifeline It aims to turn the business around. In less than a year, Arrival was announced as its UK division. Administrative access.The country's version of bankruptcy.
Breakup: Troubled EV startup Canoo; Purchased some of Arrival's assets. After bankruptcy.
Cake
Bikes and e-motorcycles are having a moment during the Covid pandemic, but that doesn't guarantee survival. In February, a cake from a Swedish company. He filed for bankruptcy.. The company, known for manufacturing high-end bikes, is prominent in the funding round. An investor's withdrawal can turn his fortunes in the wrong direction. In the weeks that followed, a man who owned a retail store in Florida. bought most of its US inventory..
But the cake got a second life. The company emerged from bankruptcy. Bought from a Norwegian auto dealer.Brages Holding AS.
Cruise robot
Cruise is technically not. Its parent company, GM, has said that the self-driving car company will continue to exist, but in what form is unclear. But the GM No more funds Cruise's main focus was the commercial robotics program. Decision “Blind” cruise staffincluding top executives.
This decision is already starting to ripple through the organization. Expect more news about Cruise and GM's plans for self-driving by 2025.
Fisker
Where do we begin? The year hasn't started well for Fisker, with the EV startup struggling to meet internal sales goals and an investigation by federal safety regulators over complaints its Ocean SUV lost brakes. federal investigations; layoffs; It only got worse from there, with suspension from the New York Stock Exchange and eventual bankruptcy in June. This is it Timeline of events. Be sure to read some, including reporter Sean O'Kane's report. The internal collapse of EV startup Fisker: How the company collapsed under the wishes of its founders.
Ghost autonomy
Ghost Autonomy an automated driving software; Closed in February.. Founded in 2017 as Ghost Locomotion, the startup has gone through some twists and turns. It eventually raised $220 million before closing for good.
Lily
Lilium, electric vertical takeoff and landing; Closed in October. After spending the money, this is an amazing number to consider. The company raised more than $1 billion from investors ahead of its public debut on the Nasdaq Exchange in 2021 through a reverse merger with SPAC Qell.
Still interested in starting production of electric planes. Over the past several months, A German startup called Vaeridion, which is developing a short-range electric plane, has closed a €14 million Series A round; It earned $430 million. Toyota works to build defense aircraft. $500 million investment To Joby Aviation.
However, there is no clarity on this aspect; 22 with blue. turbulence
Northvolt
Swedish battery maker Northvolt announced in November. Filing for bankruptcy. In the US, co-founder and CEO Peter Carlson has stepped down. The company has been an investor favorite, raising $14.26 billion, according to PitchBook, including $1.2 billion in 2023 to expand operations in North America.
Phantom auto
A California startup has developed a teleoperation platform that allows a remote driver to drive a vehicle if needed, sometimes thousands of miles away. Closed in March.. The company is Bessemer Venture Partners and Maniv Mobility; It has raised a total of $95 million from backers including early-stage VCs such as private equity firm InfraBridge and strategic investors such as ArcBest and ConGlobal.