Why So Many EV Companies Fail

Turns out cars are a lot more complicated than making search engines, social media ads or cell phones. Thank god for public safety laws.

Why they are failing? 50k to 100k is considered as a luxury car.. not many can afford 50k and up..

It's more broad than this "EV companies failing" thing. Getting into the auto industry as a whole is enormously difficult, EV or otherwise. The auto industry is littered with such failures. The EV craze is subject to it too, though the craze insulates it temporarily (the craze, meaning, people see that Tesla did it and just assume others can too, but it doesn't work that way).

Without China's supply chain the costs are just so damn high.

Before there were the "Big Three" American auto companies, there had been a couple hundred little auto companies at the turn of the century. It was a splintered and cut-throat industry. We are seeing a similar pattern with EVs. It's time for market darwinism and consolidation.

We’re in the 1990’s of personal computing with EV’s. 10-20 years and the entire auto industry will look nothing like today.

EV companies are spending most money in making fancy tech inside the EV. Just build a damn affordable 500miles EV with just basic keys and common high speed chargers. It will fly off the shelf.

They have such a hard time because starting an auto company is very difficult, we already know this.

The local Tesla dealership and it's inventory goes up and down every week. Fully packed with cars to empty. I don't think they're struggling. Side note I like Teslas and I'm not against EV or hybrid.

This is an example of why its so hard investing into a individual stock. No matter how great the story or idea. Zero guarantee it will make it to fruition.

"...remnants of the Chrysler Corporation..." Even the once-storied Chrysler brand has been a neglected, pitiful zombie for many years. I predict it'll be killed off in the next few years. How sad.

Fact is, all of these companies where brought up during the "free money" decade where cost of borrowing was practically zero, so "investors" took the opportunity and dumb lots of money into every startup under the sun. Take Rivian for example; at one point their stock was trending at $100/share without delivering a SINGLE vehicle to the customer and flashpoint April 2024, their stock is now trading at $8.5/share and they're still losing 30 to 40k on every car they sell. These companies have shaky financials, subpar to outright fraudulent technology/engineering, bad supply chain, etc, and it was only a matter of time until reality catches up to them. After all, "only when the tide goes out do you learn who has been swimming naked".

I don't want EV. I want the features EV have. But overall, I can't see myself buying a 50-70k car that would take me from point A to point B. (BYD doesn't count)

EV sales in China for March almost double compared to Feb: Excluding exports, domestic EV sales in March were 758,000 units, up 32 percent year-on-year and up 92.1 percent from February.

By YouSum Live 00:00:15 EV industry challenges and failures. 00:01:00 Capital-intensive nature of EV startups. 00:03:48 Importance of innovation and execution. 00:04:58 Financial struggles and capital requirements. 00:06:13 SPACs as a funding avenue for EV startups. 00:07:39 Cost breakdown for starting an EV company. 00:08:37 Manufacturing approaches and challenges. 00:09:43 Regulatory hurdles and safety standards. 00:11:19 Balancing innovation and tradition for success. 00:12:15 Historical parallels in the auto industry. 00:13:18 Vertical integration trend in the EV sector. By YouSum Live

This video was incredibly interesting. We are definitely at a turning point right now and I'm always excited to hear what's New with cars.

Lol, wasn’t cnbc the one that said that “there is no demand for mode 3” 🤣

EVs are indeed more environmentally friendly in terms of CO2 emissions. Though in the end, where will electricity come from to power EVs? The battery production also results in damaging the environment and creating industrial waste. Not to mention EVs' limit in extreme weather.

So the article quoted at 6:14 is from the future? It's dated October, 5 2024?

It's an incredibly tough industry. When new companies sell investors on the TAM they are omitting or telling incredible lies about the total capital required and the long term margins. Part of the reason it is such a brutal industry is that it is so influential on military capability. When a nation goes to war it better have significant industrial capability or they get crushed after the first stockpile is depleted.