Electric Vehicle Startups Are About To Disrupt the Auto Industry
After decades of stability in the automotive world, startups finally have a chance to compete
Since the introduction of mass-market vehicles in the early 20th century, the automotive industry has been remarkably stable. The largest automakers from 80 years ago are still mostly among the largest today. Breaking into this industry was difficult, very few succeeded.
The rise of electric vehicles — and the slow adoption from many established automakers — has presented a narrow window for new entrants. Tesla, which was struggling to put out their first mass-produced vehicle just a decade ago, has already become the most valuable automaker in the world.
This enormous success has inspired dozens of copycat startups hoping to follow in their footprints. Together, they’ve brought in tens of billions in funding. The basic strategy is almost always the same: begin with a high-priced luxury vehicle that will sell in small numbers, then expand to cheaper mass-market vehicles afterwards.
This is no easy task — bringing any vehicle to market requires a truly enormous amount of capital. Indeed, a few of the startups have already went down in flames while others are on life support, hoping to secure just enough…
