Why So Many EV Companies Fail

CNBC

The EV revolution could bring more change to the automotive industry than since its founding, and the potential impact is a tempting proposition for entrepreneurs. But this business is not for the faint of heart and nothing like starting an app or a social media company. It takes billions of dollars to build factories, design vehicles, secure suppliers, comply with regulations and find a way to distribute and service cars. Many have dramatically underestimated the capital costs. Going public through Special Purpose Acquisition Companies, or SPACs, is one way to raise funds. Balancing the need to respect age old industry practices, while finding ways to innovate in a highly competitive market is a struggle. The few that have been successful so far, such as Tesla and BYD, are emulating some of the practices that helped automakers like Ford and General Motors emerge victorious from the industries first wave of consolidation in the early 20th century. But others like Fisker, Lordstown Motors, IndieEV and WM have failed or are at risk. Chapters: 00:00 - 01:24 Title card: Why so many EV companies fail 1:30 Chapter 1 - The potential 04:31 Chapter 2 - Money 07:34 Chapter 3 - Manufacturing 11:50 Chapter 4 - Vertical Integration Producer: Robert Ferris Editor: Darren Geeter Animation: Christina Locopo, Jason Reginato Senior Managing Producer: Tala Hadavi Additional footage: Getty Images, Tesla, Rivian, Canoo, Ford, Dyson, BYD, Lucid Motors Why So Many EV Companies Fail