Why So Many EV Companies Fail
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- เผยแพร่เมื่อ 3 พ.ค. 2024
- 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 industry's first wave of consolidation in the early 20th century. But others like Fisker, Lordstown Motors, IndieEV and WM have or are failing.
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
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Turns out cars are a lot more complicated than making search engines, social media ads or cell phones. Thank god for public safety laws.
I guess BYD is really crazy good huh
Not really when an EV is mostly the car shell and the battery
@@ME-xc1stthat’s like saying a computer is just a processor and a hard drive
@@ytguy726thank you. People so easily say the most idiotic and ignorant things with confidence and don’t realize how wrong or foolish it comes across as let alone is.
Actually has more to do with making cars in general. Making cars is hard. When was the last time you saw an ice startup become successful without being bank rolled by an existing manufacturer? It's just a clickable head line ATM to add the word EV to the title. But making cars, EV, hybrid, h2, steam, or ice at scale, profitably is extremely difficult.
Why they are failing? 50k to 100k is considered as a luxury car.. not many can afford 50k and up..
Teslas are available for under the average new car price.
You can now buy an EV cheaper than a Toyota Camry.
@@MadDogEighty80 the main issue is the big ICE car companies haven't gotten the DEALERS on board yet. They were happy to sell Lightnings for a 50K markup, but now that they are in good supply they don't want to sell a low margin EV to a potential truck buyer. Plus servicing the EVs is mainly just replacing the tires. Those $150 oil changes add up.
Don't believe me? Go to ANY Ford dealer and ask to look at Lightning and see how fast they are showing you new F150s and F250 ICEs instead.
@@redwolfexrI’m pretty sure the 90 mile range while towing deters people from buying
@@user-zt6bt8dp2c Most people buying F150s are not towing anything. You get F250s/F350s for that.
Most trucks are rarely used for towing or cargo "in the city." Those are the types that are looking at Lightnings in the first place.
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).
Goated Talent
EVs are a once in a generation opportunity to compete in automotive. It will never be easier in out lifetime -but that doesn't mean it will be easy -or even profitable. That is the mistake.
@@skyak4493 It will never be easier than it was right about 2010 or so. That year you could buy huge factories and huge press machines for a song, there was no established competition, etc. By 2015 the window of opportunity was closing fast or already closed, any new company would be entering the market no sooner than 2018, when Tesla would be making the Model 3 in mass market volumes and prices already. But IF these companies had delivered top quality cars then there was still a window because the Model 3 was bad in terms of the body construction, as Munro pointed out.
But now, you are entering the market against two vertically integrated companies making 1.5 to 2+ million EVs this year, so they have huge scale of production advantages, and huge efficiency of production advantages from years of experience and having top talent, and from making their own parts so no packing, unpacking, shipping, receiving, and they can make changes in minutes, and they set the market price. That is the crux that this video missed in all the details: it is impossible for a startup to match both price and quality with Tesla and BYD. Startups can make a competitive car they will lose money selling, or an inferior car at a competitive price that will not sell much.
@@tribalypredisposedYou and the top comment nailed it 🔥 woah! I only wish for them to start working in the quality.. but yeah Love my tesla
@@skyak4493ok boomer
Without China's supply chain the costs are just so damn high.
What is annoying is the taxes added on imported goods. Further increasing costs.
Don't care about politics, but this part is purely just idiotic. Becoming another variable that hinders people to do their things.
If we can get iPhones from China why not cars too? The $10k Seagull EV would help everyone
@@ME-xc1st Do you want your car have the same lifespan as your phone?
I don't even want my phone with such a short live span, I miss my Nokia.
@@buddy1155 A car is much bigger than a phone, why would they have the same lifespan? Also, Nokia phones are just for old people who can only think that a phone can be used to call someone instead of a multi-purpose device that can be used as a credit card, GPS and etc.
@@buddy1155the teardown of seagull does not show they are built of cheap and unsafe cars. Inexpensive yes, but not cheap.
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.
It's okey to build/ add in various technologies. But it's getting annoying.
There is market where customers are satisfied with stable/ mature technologies/ solutions into the cars.
Lowers the overall costs, for everyone.
ICE companies are starting to pull that nonsense too. I just want a cheap (under $20K when brand new), functional car that runs without major maintenance issues for 250K+ miles. I don't care what's under the hood, I don't need fancy screens, and I don't want my car connected to the Internet or selling my data. This isn't hard to understand.
It has nothing to do with the technology EVs are expensive because majority of companies have not reached scale with them yet besides Tesla you can get a used Tesla for 21k - 33k depending on if you choose the 3 or y
Chevy did… the Chevy Volt had 60 miles of EV range and 330 mile gas engine. People didn’t buy them. But now as gas prices continue skyrocket the more people are going to realize a plug in hybrid is the future.
The 500 miles range is the hard part. Things like the Bolt or Leaf are hardly tech showcases and they still cost 50% more than a gas equivalent with half that range.
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.
Yes exactly! In ten years there will no longer be ev's because all the companies are bankrupt and they stopped making parts and software ages ago. Spot on!
Andreavenaa interesting comparison, but it'll take quite a bit longer than that, I think. Cars, whether electric or not, are not analogous to computers. They may contain a lot of technology, but they're still a car at heart, and the automotive industry just doesn't move that quickly.
Already, here in the uk, the original date for 'banning' the sale of new cars with an entirely petrol or diesel drivetrain has been put back by 5 years to 2035, from the original, date of 2030. The government hasn't even whispered a suggestion about its policy on hybrids, which leaves the door wide open for cars with ice (as hybrids) to be available for at least another 5 years, possibly 10. That's potentially another 20 years of ice type vehicles being sold as new, but at a minimum, 15.
I personally think that hybrids (PHEVs) could be a good transition solution; they can be dull and super efficient, a good all rounder, or a quite high performance car, so something for everyone, and allow for zero emission driving where it really matters, whilst not having any range issues.
I think your overall idea is correct, but it will take so much longer than you suggest. In 40+ years, yes, the auto industry will look very different.
This right here. And I will just add that most people who are afraid or adverse to driving EVs really haven't done it yet. I have found the experience amazing even in its infancy. The next generation of automobile owners/drivers have nothing but good things to look forward to. All of the older folks (and I'm an older folk - but I did switch over to an EV as my primary vehicle and I absolutely love it) can hold on to their opinions if it suits them. But honestly, all they are missing out on is a really cool experience.
Nah, costs of EVs are keeping people away from them. EVs are more in line with solar panels. It’s great in theory but not so much in practice…
@@Chad_Max they don't work for you? It works for a lot of people.
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.
Yep, this broadly applies to the whole auto market. It is a VERY difficult market to enter as a new player.
Damn, you beat me.
You literally just regurgitate the video's comment at 12:15 as your own comment.
@@Snugglepaws_OwO hahahah so? Why so salty
None of this is true, it just comes down to subsidies, convenience and affordability. People, especially outside of 🇺🇸 and in this economy, are less brand loyal than ever. Legacies treat us like 💩 anyway.
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.
Although demand for Tesla has lowered, that isn't the only problem with Tesla; it's also everything else. And that everything else will add up once demand lowers further with the introduction of more players in the markets.
I wouldn't say Tesla is 'struggling' since they still get investor money, but they are certainly being pressured more and more. We'll see how all this plays out a decade from now.
I don't think Tesla can compete with the legacy car makers once those old players are delivering the same product with bigger quantities and cheaper prices.
Have you noticed that Tesla is running ads? It means that the pool of tesla fanbois is no longer enough to keep it profitable
@@linusa2996 I don't own Tesla and have no plans on owning one despite liking them.
Tesla has dealerships now? I thought they only have delivery and service centers?
@@Fabulousprofound168 I'm used to the word dealership. Just call it the Fanboy Members Only center.
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 love the brainy response. Seeing comments such as this and many others urges me to swiftly grab a book and notepad. I’m stealing that quote at the end fyi, it was a lovely one. Thanks for sharing your knowledge and insight.
Make TOYOTA Tundra Great Again 😎 Scotty Kilmer
There is no possible way rivian is losing 40k on every car.
@@hastyscorpion That statement is always so misquoted, they don't lose money on each car they sell; they are losing money in overall costs, including factory overhead, but the more cars they sell the less money they lose.
Alternatively, they're shrinking from what you call "free money decade" because the money is so expensive now. It's almost as though when Fed purposely slows economy and they admit up front that some people will lose jobs as they try to pull back inflation... and then people lose jobs as expected, it's not really surprising?
This is a feature, not a bug. Tesla is probably the first in a line of manufacturers, since they're direct to customer and don't have a dealership network to absorb extra inventory and delay some of the layoffs. Car bubble has been coming for a long time
"...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.
Dodge. might be killed first, because Chrysler has those minivans. But Dodge, well, has some performance cars that it turns out not so many people want. Challenger and Charger sales are lower than that of the Mustang, which is itself in clear, sharp decline. I bet that maybe Stellantis may end up relying on Fiat, with its 500e and its 600e, along with possible introductions of its Strada Pickup Truck and possibly even the Tipo and/or the Panda, and then they may rebrand the Chryslers as Fiats or Lancia models, depending on what's appropriate. I doubt that too many people would mind.
"Storied?" Chrysler has been garbage since the 60s.
@@unconventionalideas5683 minivans? they are selling Chargers and Challengers like popcorn at the faire.
There is still a pretty big market for a specific kind of sedan and Dodge is still making them and cheaply. Both Ford and GM with their US focus went all in on Big Gas SUVs and Crossovers. While Euro-connected Chrysler-lite went the other way and still focuses on cars, especially after they spun their truck brand out to standalone dealers. They compete more with the Asian brands than they do with GM/Ford -- other than RAM/Jeep. And even Jeep makes more Euro/Asian style vehicles than ones I would trust on a trail.
Don't be too overwrought. The people that built that company are long gone. I'm not even sure what it is now. (Jeep, AMC, Daimler. . .? )
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.
Agreed 100%, my Wife and I are retiring on Fidelity FXAIX and FTEC. Look them up, we have done grate over the years and we never had to stress about Individual Stocks. Yes, there are still ups and downs, but in the end, you are way ahead.
Lol, wasn’t cnbc the one that said that “there is no demand for mode 3” 🤣
Don't know exactly which video you are referring. But while being in the market, many variables within the economy should be observed/ analyzed. So that an proper understanding emerges.
Believe that the demand have decreased past few years regarding ev cars.
But above video is about companies as whole & their success rate.
@amirshahab3400 it's not helped that news outlets are pumping 3 to 1 in negativity on evs based on what I have seen
@@amirshahab3400 demand hasn't decreased, it just stopped increasing in the last few quarters.
IT IS NOT JUST EV COMPANIES.... IT IS ALL CAR COMPANIES ... more petrol car companies have failed per year than EV-companies. It's normal to struggle as a CAR-MANUFACTURER. ALL BIG CAR INDUSTRIES have lost money in the past 8 years.
Exactly
Really? Toyota, Stellantis, BMW, Mercedes and many seems doing well these years. EV companies are not so resilient.
@@lonelygod6629 seem? hahah NO! look at the statistics, they are loosing money left and right. they have been in panic mode for 4 years now. They are losing money with almost all vehicles per sale. Their car's value is also now the fastest shrinking resale values of all times. If you want a car to be stable in price and worthwhile, all you can buy is a Tesla. Tesla sells A THIRD as many cars as Toyota overall per month now btw, soon overtaking that largest manufacturer in the world. Be prepared for it. :)
@@lonelygod6629 lol no - nobody is buying their EV's | they are going bankrupt, dont worry.
@@luderxthat’s why they are gonna start selling more hybrids and plug in hybrids.
Anyone who’s driven an electric car knows there’s no going back to gas or hybrid. No comparison and being much more efficient is a bonus, getting about 300 miles for just $7.00 of electricity
People are going back to ice vehicles in droves ….
Who wants to queue for a measly recharge for hours at a time ?
@@batmanlives6456 Other than the occasional road trip I charge at home 99% of the time and, getting about 300 miles for just $7 of electricity is a nice bonus. Public charging takes 30 minutes max to charge from 20 - 80 percent at a Tesla Supercharger. EV sales is growing but grew less due to slowing economy. The transition to electric cars is inevitable and soon new gas cars won’t even be available because they won’t be profitable to produce
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.
And where does the electricity come from for powering the oil rigs and refineries?
Solarpanels and windturbines
this comment reeks of big oil lmao, muh carbon footprint
its actually twice as bad with ICE
A coal or natural gas fired power plant is many many times more efficient than a gasoline powered car. Not to mention the fact that the grid is 60% fossil fuel at this point and dropping.
Even coal power is massively more efficient than gas engines in each car would be even with hybrids for that matter.
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)
basically you are saying you just can't afford an EV but you want it. got it
Leaving the AC on while you shop or dine is one of the best. One pedal driving is also nice. My legs can be at rest when stopped. The ability to accelerate like crazy to get on a freeway or out of harms way never gets old.
You can get a Tesla for $39-45k, maybe less if you have state incentives.
@@InPursuit2023 I got the tax break and that made my Model Y long range about 43k. They are even cheaper now and you get the credit up front.
@@Ascendant2020 yes, that's what most people are actually saying. If EVs were affordable they would buy them. There are only so many people who can spend $50k+ on a car and those who wanted an EV already got one.
They forecast global demand for EVs, but US demand for EVs is stagnant. You can't ignore the social resistance to EV adoption in US society.
It’s no wonder with the right-leaning press and oil companies pushing their anti-green agenda
Social resistance is not all organic. Most of it is caused by propaganda (misinformation) specifically targeted at companies that are disrupting some other industry.
Ah yes the ‘every year has more sales than the last, but ev demand is stagnant’ argument. Love that one
Have you ever thought that the social resistance to to the 40 to 80 thousand dollar price tag, not to the concept of evs?
@@hastyscorpion In the US the average car price is 47k for gas cars and you still have to buy gas and get oil changes.
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.
90% of the battery powered car companies would probably not have ever existed without the federal government handing out tax dollars. Battery powered cars are an absolute environmental nightmare
$400 a month for gas
$40 a month for ev.
Go electric.
But gas price goes up.
Tesla is the best car company ever! No gas stations, No oil changes, No smog check, No corrupt dealership, No catalytic converter and as fast as a $650,000 Lamborghini..
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.
The video suggests Rivian went public via a SPAC (like most recent EV startups), but Rivian went through a traditional IPO process and raised over $11B which was the 6th largest IPO in history at the time.
Starting from scratch seems like suicide.
I am interested in how the Sony/Honda partnership will go. You have Sony making the software, sensors, etc., while Honda builds the bulk of the car using their own experience and factories.
Apple, Dyson and others should have solely focused on providing the tech and partnered with an already established car maker. This is like how some battery companies solely make batteries for EVs in partnership with established car makers. After all, the core of an EV is the batteries and electric motor. Everything else has already been established. No need to reinvent the whole expensive process of making the rest of the car just because you think you can make one component better.
Apple should have taken their opportunity to merge with Tesla, moved cook out to pasture and handed the CEO job to Elon Musk.
Apple approached BMW in Germany about making a composite bodied car for them, after seeing their success with the i3. However, we all know apple's way of doing business, and when they spelt out their requirements for the deal, BMW laughed them out the door, and that was that. I actually find it hard to imagine any well established western car company partnering with apple, because they are so greedy, and won't countenance anything other than huge profit, at everyone else's expense. I could imagine, however, Apple partnering with a Chinese ev company, like BYD. After all, all their phones are made in China by Foxconn, so why not their cars ?
As a Brit, I was very disappointed that Dyson didn't go forward with their plan, since they kept saying how amazing and innovative their vehicles would be. But I agree with you, they should have partnered with an existing car maker.
@@richardconway6425the Dyson car was just a smokescreen for them to get the Singapore government's approval to set up in Singapore to benefit from low taxes, I don't think they seriously wanted to build it.
It’s not about EV, it’s about companies ran by designers with not so much financial background. If you’re not fit for CEO, of course the failure is imminent.
all startup has high risk of failure. its how the world weed out the companies that could become giant. we are talking like failure is unusual, no, success is what is unusual... we just forgotten all the companies that collapse. most companies do not survive.
pretty much, if you are not elon musk you are not fit.
The only company run by a designer was Fisker, and he fails time and time again. All the EV startups have LOADS of financial people -and it ain't cheap paying all those turkeys to stick their neck out and lie!
Automotive is simply a high risk, low return industry that every nation needs to be a viable superpower.
@@luderx Elon Musk is not even fit. He is a massive liar.
@@luderx even Tesla was days from bankruptcy at one point.
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.
there is no simplicity, modularity, and full cycle end to end development. You should have a dead simple cheap city car, be able to take out the car battery, replace with a new one and get rebate for dismantling it and collecting good cells which can be reused for power storage. Like an ebike. Instead companies are focusing on self driving and high tech luxury cars
Seeing a lot of ignorant comments from people who have no clue that EVs are not only better cars (only a more invested charging infrastructure needed) but they really aren’t any more expensive for the life of the vehicle. Funny how you never hear how pick up trucks are too expensive to buy. But of course, anti EV propagandists will use that outdated rationale.
Its not ignorant comments it's bot accounts
@@Wongseifu548good point
I hear about how expensive pickup trucks are to buy nearly every single day, but I'm on the truck forums and work with truck buyers. Regarding EV's, there's a lot of bad information out there, some of it due to malice, and some due to ignorance. It goes both ways though, the EV forums are filled with false estimates of cost to run ICE and hybrid cars. I nearly purchased a Tesla but went with a hybrid Camry.......the creative accounting that people on the Tesla forum were using against the Camry was pathetically biased. As far as ignorance, you have people like my FIL, who told me that EV's need their battery replaced after 5 years.
I can agree that there have been some EV winners -but the have been MANY EV losers! Look at the realization that EV are DESTROYING the insurance industry and resale values are tanking.
Calling others "ignorant" while you ignore all negative data is Hypocrisy!
@@InPursuit2023people also are not taking into account how much of a better drive EVs-let alone better for the air quality-not just now but also in the future. Exclusively focusing on money is missing the bigger picture. Myopic thinking is rampant.
and now Tesla just laid off more than ten thousand workers and a major executive
Its business, sales down, profits down, lay off workers. Tech sector has been doing that quite a bit the last few years as their sales are declining too.
@@rubyruby7573 okay... CGPT do your hallucinating worse
Meanwhile Tesla wants to pay Elon $56 billion, while Tesla is down 30% YTD. That money could easily pay for those 20k workers.
ALL new car companies struggle, people don't just jump and buy a car from a manufacturer that has never done a car before.
Well Pepsi and Frito-Lay just done that they gonna wish like hell they didn’t invest in those Tesla trucks they should’ve just kept the fleet that they had.
So the article quoted at 6:14 is from the future? It's dated October, 5 2024?
😂 good eye 👀
Its from 2023.
@@Thocky-lu5zz 😂 look again
@@vroor32 The real article was published in 2023. Yes, in the video its the wrong year.
The comment I was looking for. I had to check the date again. lol.
CNBC on an anti EV crusade recently first the tire strory then the "lack of sales", the "hybrid is better story" and now this 😂. How much are the oil majors and dealerships paying you?
Given the spike over the last few months probably alot
Yeah Im seeing the same. CNBC engaged to spread false sentiment against EV vehicles.
99% of All EV FUD are payd by BIG OIL 🛢️
Exactly... msm is in bed with big oil....
You can’t handle the truth
Good video and great analysis 👍🏻
This is no surprise or anything new. Whenever a new type of product gets released a ton of new companies appear and most of them fail. The same thing happened decades ago with ICE cars.
And this is why BMW's strategy of having an initial wave of EV's built on the same platform, using very many of the same parts as its ICE cars, is kinda genius --you tap into the economies of scale that the ICE + EV vehicles combined give you, instead of just relying on parts for your bespoke platform EVs.
Instead of listening to people telling you to start fresh, they should have just made the drive train and convert existing used vehicles electric. Much more feasible to start that way, than making a whole new car.
That is literally making a whole new car. You do realize EVs and ICEs are not interchangeble? They have completely different load distributions, and EVs are generally much heavier and simpler vehicles mechanically. It absolutely makes more sense to focus on designing them from scratch rather than retrofitting the billions of existing unoptimized ICE models.
That can be done, but it won't have very much range when completed. The cars with 200+ miles of range take very large batteries. Designing as EV from start is the only real way to do it.
This problem only applies to American and European markets because they do not have the required supply chain.
The cars are too expensive, they include unnecessary additions that nobody asked for, I don't need touchscreens and top-of-the-line GPUs, give me only what is necessary and let me upgrade at a later date if I want to.
Short answer: greed. Money and a lot of it, as fast as possible. Could make a great product, simple, reliable, reasonably priced and thus, competitive. But this would bring profits down the years, slowly. But people want money, now. So the electric cars became complicated, unreliable, overpriced. And bubbles burst, people detect the problematic product and they refuse to buy it. ICE cars are in a similar situation, regrettably. Make good cars people can use, if you make them, they will sell.
Part of the problem is that the federal government mandates too many safety features.
Evs are neither complicated nor unreliable. You don't seem to know what you are talking about.
@@hastyscorpion Thanks, had a laugh. Sure, and the Earth is flat and the center of the universe. Visit Chicago in the winter and look around for reliable EVs, they are mostly stuck by the chargers.
@@romgl4513do you know ICE cars can struggle in the cold too? Plus, how often does this very cold weather occur, and where? This is also caused by Climate Change too, it is your karma for a car to not start in the harsh winter you created for yourself
Good timing.
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
Massive cost.
100+ years of brand loyalty.
There’s no replacement for displacement.
I would have bought a small EV pickup truck years but the only options were tiny cars. Get going already, Toyota.
Toyota doesn't want to make EVs, that's why they're switching everything to hybrid right now
Many but above all else, a lack of a standardized charge plug which works with every brand. Imagine if there were proprietary gas pump nozzles for each brand and you get the idea.
The Tesla charging port NACS will be the standard port. Most manufacturers have announced the switch a while ago.
@mikaxms in the US, but in Europe, by law all Teslas use the EU standard.
@@linusa2996and it’s now each continent has 1 plug (going forward) which is fantastic
NACS has become the standard for the US, against what the current administration wanted.
@h20dancing18 not really, it means that the manufacturer has 2 different charging standards and parts, 2 sets of maintenance procedures and support courses
Because moving an 80kg human with 2000kg of refined raw materials is insane. It's inefficient & a massive waste of resources.
Depends on how you measure efficiency. I can drive to my sister's house in 20 minutes on weekends where there rarely is much traffic. Attempting to make the same trip using public transportation on weekends where many routes are either hourly or not operating at all will take 2-4h depending on how the 3-4 transfers I'd need to take line up. Add the return trip, that is 4-7h of the day wasted. During peak hours where most bus lanes are running every 15min, it would be a somewhat more palatable ~1.5h.
If I didn't have my own 1300kg box of refined materials or one I could easily borrow, I'd have to hire another 80kg human to drive his 2000+kg virtue-signalling tire-ripping box of more exotic refined materials to me, drive me to my sister's house and then drive however long to his next customer, rinse and repeat for the return trip. That is an even less efficient use of resources.
@@teardowndan5364 That's a failure of urban planning... back in the '40s we seemed to believe that building our entire infrastructure around the car was a good idea. Turns out, it has tons (pun intended) of downsides too
Mrfunnybones that's a very good observation, and broadly speaking, very relevant. It makes electric motorcycles look like a very good idea. Limited range, yes, but perfect for urban and city use during the warmer months. Efficient, and zero emissions, at point of use, so great for air quality. I think we must always remember how important air quality is, in urban centres.
We are currently in the infancy of battery technology, so this metric you describe will surely change in the future, by a huge margin.
@@neaorin Even in a public transport wonderland, you'd still have mostly 2-3 cars wide streets everywhere simply due to the need for delivery, moving, construction, utility, emergency, public transport, trash disposal, etc. vehicles to be able to park on either side of the road to do their job while leaving enough space for a third vehicle with business on the same street to still be able to drive through.
Highways may have fewer lanes (probably still will want a minimum of three through urban areas to avoid having to shut the whole thing down on every minor incident) but roads will still need to be built at least as strong as they are now to support every heavy vehicle gaining another couple of literal metric tons of batteries to achieve adequate range between charges.
Cities would still look mostly the same overall, minus the parking spaces. With people having significantly more limited mobility, you'd also have a lot more space spent on smaller, less efficient local shops duplicating each other for locality's sake. I know I have no desire to go back to the days of seeing a McDo or whatever the next craze will be at every other street corner. Restaurant prices are already out of control, imagine if they had to amortize their operating costs over 1/4th the customer pool size due to restrained mobility.
@@teardowndan5364 That's not what I said though. Cars are good, and very useful appliances. For some tasks, they're essential. But building your entire society around the car - meaning that for 95 percent of the trips you want to do, a car is the ONLY viable option - has a ton of downsides.
If you think cities would look the same, with 2-3 cars wide streets everywhere, go check out some '70s pictures of Amsterdam... then go visit the same city today.
What is this? Is CNBC SO OUT OF TOUCH with what's happened with BEV they don't understand this issue?
Outside of China, there AREN'T many EV companies. Most companies that make, and to be more specific, BEV, not EV, are regular car companies and the only ones I know that aren't selling used BAD thinking before making them. A short list. You don't make a Truck a BEV unless it can tow and STILL have a long range. That can't happen currently and in the US people like to use trucks as, well, trucks.
You shouldn't take an expensive, non-popular line of vehicles like Cadillac and make BEVs with them and think that MAGICALLY people are all of a sudden going to buy Cadillac at a HIGHER price. If people don't like Cadillac and the sales suggest most people don't, don't use Cadillac to make BEV.
Who in their RIGHT MIND thinks it's a good idea to make a BEV with a HUMMER? Yeah that's something I see on the road all the time, NOT. I MAYBE see one about 1X month. So once again, through in a battery pak, make it more expensive and less capable and somehow people are going to want something they didn't before?
Tesla, forgetting the stupid Cybertruck (see above about trucks), cannot make vehicles fast enough, nor can Hyundai. So, what this tells me is that the age old idea about consumers is still true. If you make something people like, they'll buy it if they feel it's at least a decent value.
Consumerism man, you can REALLY count on it being the same generation after generation, as far as what drives it.
Inside of China there are lots of failing BEV companies, yes. They should have never existed and that's the failure of the CCP and their subsidy programs driving manufacturing, but not consumerism. Once again, consumerism is what it is around the world.
Once Japanese car companies start making more affordable CARS that are BEV they'll sell like wildfire as long as the quality is good and the pricing is decent.
In addition to the high capital barriers, the market is not nearly as big as the prevailing "wisdom" thought. A recent Gallup US survey showed that only one-sixth of people either owned, or would seriously consider purchasing, an EV. Another one-third would consider it, and one-half would not consider purchasing an EV. The market for EVs is nearing saturation, unless huge strides in cost and performance can be achieved very quickly.
Because only the rich can afford all the downsides to EVs. Only Ebikes make sense
what are all the downsides?
Ebike has a similar problem. Loads of Ebike blends pop up but most of them will not survive in the next ten years. Many Ebikes use proprietary motor, battery and control unit. When the blend goes, where do you find replacement parts? So the bike will stay in your garage, and eventually in the landfill.
I'm convinced that CNBC hates EVs
Wonder who is funding them…
..... And payd by BIG OIL 🛢️..
@@Jack-ic7jdBIG OIL 🛢️🛢️.....
Most people do.
10:41 Using news from 2017 to shxt on Tesla. LOL
I went through the tech boom on the 1990s in Seattle: lots of start ups failed.
you cant expect to compete by doing the business the same way.
you want to success in heavily saturated field of car makers, do business differently like
require no credit to buy or lease your car
Everyone needs to understand - In China, there is massive subside by the government to keep growing this industry - here lot of money is being spent but the infrastructure is so poor for EV adoption (apart from Tesla) it's just a pain to use an EV for a long trip - improve the infrastructure, provide faster charging and it will automatically attract more customers
And everyone needs to understand these subsidies have been scaled back and consolidation is taking place. You cannot build an entirely new network without subsidies and letting the “free market” decide won’t work. Even Tesla succeeded thanks to subsidies. The roads america built was thanks to american taxpayers
So it's the surrounding infrastructure parts that are relatively expensive, not the cars themselves.
Those EVs need to last too. Otherwise it defeats the whole point of an EV. What's better for the environment, upgrading to the latest baddest model every 5 years or keeping your same EV car for 40?
NO THANKS. TRASH
@@user-bm6xz6pq5z ECONOMY DONT WANT THINGS TO LAST. THEY DEMAND SALES
Faraday Future’s stock went from $3,000 to less than 10 cents
Scam stock MULN down 99.85%😂
It really doesn’t help that America basically started a trade war with China right before they started pushing EV because they also simultaneously started a war with Russia. EV cells pick up when gas prices rise. America caused gas prices to rise by putting sanctions on cheap Russian oil and natural gas. That forced both America and Europe to refocus on getting their citizens into electric vehicles because it was politically untenable to have such high gas prices. If you remember in 2021 premium fuel rose beyond six dollars per gallon.
As for these EV companies: most of them build small, barely desirable vehicles.
Tesla has already shown you what you need to build in order to sell to the American market.
You need a car that is larger inside than most other cars yet in between 30,000 and $50,000. The Tesla model 3 and model Y are great sellers because they outclass Honda/Toyota/Nissan in interior space and speed.
All EV makers need to be focused on making model Y competitors.
Kia and Hyundai in my opinion has been doing the best job addressing the needs of the American market. The Kia EV9 for example, is a great product even though the price tag is a little high.
It's odd how often the mass media downplays Tesla. It's very strong and makes the Big 3 look like upside-down turtles. It's not even strictly an auto company, and it brings a number of products and services to bear, making it a juggernaut.
These companies get billions in handouts but the rest of us are told to pick ourselves up by our bootstraps 😂
Generally this is how it is whenever something new, especially disruptive hits the market, you will have many companies compete, in the end there will be a big 3 or big 4 when the market matures.
funny that they think big 4 advantage is that they are not vertically integrated and that EVs will die leaving legacy as is. No mention of legacy market share dropping evey year and that tesla is the most profitable car company in the world
EVs are too expensive (even cheapest Chevy EVs start around 40k). Batteries life span decreases as you charge and recharge. Car battery replacement costs as same amount as brand new ICE car.
Car battery replacement cost same as a new ICE CAR?! I didn’t know new cars cost around 10k. Were you finding these prices?
@Ye-tf9im I talked to the neighbor, who is tesla tech. I live in Canada. He told me that if it is out of warranty. The battery plus labor to replace costs over $40k.
@@ENTHUSIASTICFIFAFAN For a Tesla Model 3 an out-of-warranty battery replacement is more like $12k USD, per receipts posted on Reddit.
Even then, it takes 8 years or 150,000 before the warranty expires and you will still have around 70% of the original battery capacity.
@ME-xc1st But even major repair on ICE like engine replacement doesn't cost over 3K. So replacing the whole battery costing over 10k sounds too expensive. Should be 3 to 4k at max.
God Oil companies must be paying a premium for anti ev coverage
Don’t be a conspiracy theory lunatic.
Are you pro EV? You're in the wrong country if you are. Go move to the Eastern hemisphere troll.
Just contract it out to Foxconn, it is impossible to make money by investing in capital intensive manufacturing, these products are not rocket science, it is just a car
Insuring them is a problem. Their certified shops milk the insurance company. Customer still clueless that the bodyshop is milking their insurance.
Whatever the solution, just don't go for subscription based services for car features.
They are catching fire
Because nobody wants them
Lol nice try troll
@@Wongseifu548 you’re a potato
Tesla model Y was the Best selling carmodel on planet Earth in year 2023 😊😊😊😊
@@mikafiltenborg7572 Wanting a Tesla is not even close to the same as wanting an EV. Good try tho
LOL you're using an article from 2017 (!!) to back up the claim about Tesla's poor "fit and finish"? You do realize Tesla's manufacturing has matured a lot in the past seven years, right?
Question: how much is the demand for it? Is the demand real, or just forced by legislation?
Can't sell something that not many want to buy. If there is profitable demand for this, existing car manufcaturers would be rushing to meet that demand and rake that EV money in.
Most people don’t care how the wheels on their vehicle are powered. The demand is being hindered by the lack of charging options (the range anxiety issue) and improvements to THAT is being actively opposed by the fossil fuel lobby.
people aren't willing to pay $20k more for EV, this is a cost issue not a technology issue, most people are interested in EV but not the higher cost upfront, this is the main problem right now
Honestly, companies don't want to sell a car that has low maintenance costs. You basically just change the tires and wiper fluid in an ev. The worst part is having maybe a low range one if you drive a lot, but if you have a home charger, evs are lifestyle changers.
Lol sleeping in and having your car fully ready for you constantly is definitely a game changer. Also, some townhouses are even allowing the 220-volt outlet (basically a laundry level outlet) to be on some properties. Once you have a cable that can reach your car, it is even accessible to more home types.
Two electric vehicles collided. These massive explosions is just a little green energy from those eco friendly lithium ion batteries. I’m sure this is nothing to be concerned about.
They don't burst immediately into flames and already safer blade batteries are being used in newer cars.
Another great video ❤❤
Car producers need a large sales volume to get profitable. Many new EV companies won't get to that stage and end up as hugh money pits for investors.
Lucid Motors is backed by Saudi Arabia's Public Investment Fund, so I expected them to keep writing those billion-dollar checks for a really long while.
And the big 3 of DEI/ESG/CSG/"BRIDGES" (and everything else you hate about the way companies have been going over the past 10, 20, 30, and 50+ years, are #s 2-4; Vanguard, BlackRock, State Street
Word on the street says they’re closing to filing Chapter 11
Great video, a lot to think about here.
We obviously need more good engineers, not greedy capitalists, leading companies to make great engineering products. The typical corporate culture here is more about finding the quickest ways to siphon money out of the customers' pockets, finding ways to prevent customers from cancelling subscriptions, finding ways to prematurely make an old product obsolete sooner so as to force a customer to buy a new one.
" quickest ways to siphon money out of the customers' pockets" And to do that you need to find the best engineers to optimize your product, which includes designing it so it meets all regulations for the lowest cost. What do you think these companies are made up of? Haven't you head of the saying "Any idiot can build a bridge that stands, but it takes an engineer to build a bridge that barely stands."?
@@serebii666 There is a balance obviously. And these days it is about the balance being tipped over to short-sighted greedy capitalists. Plenty CEOs got fired with exit package with tens of millions dollars having created a big mess. Other countries have evidently done what we have troubles doing at a much lower cost.
Cause a lot of them saw Tesla and rushed to put a car/truck out instead of taking the time to make a quality vehicle for an AFFORDABLE price
These EV companies should take lessons fro Microsoft. Just release the product quickly, even if there are bugs in them. Get to the market first, and get people hooked, then fix the bugs later.
We are not ready in this time in history for evs , but hybrids , yes . Right now an ev is like a town car for retirees and rich housewives in sunny states . They go locally and have time and the apparatus to recharge . An ev is too extreme for most people .
I do not believe that EVs will represent 46% of vehicle sales by 2030. They are mostly a gimmick with little benefit to the environment.
Reminds me of Solar days, before 2012 election Solar energy was a hype, many of us vested in Solar, a few years later most of Solar stocks tanked.
Around 2020 election, EV boom came but a few years later most of EV stocks tanked.
Lack of proper battery testing batteries degrade fast in cold enviroments. Lack of range and interchangibility. Every ev should have 500 mile range with easy to change energy cells for hundreds of miles of additional milage.
If somethings going to replace gas engines it must be as good or better then gas. Only a crazy person would pay ev prices to get less reliability.
most start ups lack fundamentals of business. They all trying to create premium EVs. But let's be honest it is easier to make an expensive EV. That's where established players like Tesla and legacy automakers will thrive. They have the brand prestige to pull it off. If you're a start up, you shouldn't be making 50,000 USD suvs and performance EVs, but trying to be the Ford of the EV market. Especially in a market like the USA, were cars have gotten very expensive. You want to create an EV for the masses. Lead the shift to EV adoption. Something like BYD.
This requires an acute mastery of economies of scale and business fundamentals, which most tech bros and silicon valley execs lack. The Chinese seem to have mastered this, after decades of mass producing goods for the rest of the world. The efficiency at which Chinese produce EVs is a feat of engineering.
I just hope Aptera can beat the odds. I really want to buy one of those. Efficiency is the key across the board
The question shouldn't be why do so many fail (there is a million different t factors working against a new player in auto manufacturing, let alone a novel space like battery powered vehicles), the question really is, how has any single one of them managed to succeed (tons of government aid), and is it a viable strategy for future success (no)
only ev startup i care about is aptera, genuinely different and cool. But i really dont see that coming out till 2+ years
It's still a niche product - like the mini cooper. People love them, but they aren't very practical. Hybrid is the way to go. I have power and range and I only sip fuel.
The Xiaomi SU7 just came out and they sold a ton of cars. It looks great but they completely forgot about reliability so they can’t have warranty and insurance companies don’t want to insure it because they lose too much money
Ground breaking journalism here
Race has been started. The game is who will survive . The fittest to survive will get gold
I just don't understand why there isn't more collaboration with EV startups and legacy automakers. The EV startups don't seem to have enough experience in car design, mass production, and after-sales support. The legacy automakers have those but don't really have EV expertise. I know there were collaborations like Toyota / Tesla and Ford / Rivian, but these collaborations fizzled out later.
Because of excess capacity from the huge amount of money raised from investors/government (China especially)….last few years
Hmm. Did the ICE vehicle cost rise so dramatically to push consumers into yet higher costing EVs with the secondary (?) benefit of further subsidizing their production? I see several levers, especially among manufacturers of both.
And then you have Mate Rimac starting EV business in Croatia (small country with no automotive history) and now building the best EV hypercar in the world while also becoming a CEO of Bugatti in the meantime and EV parts supplier to major other brands.
This video needs to add topic, why so many ev are failing in the US
Capital invested in EV's corresponds to devaluation of invested capital of traditional OEM's.
The growing disparity between income and house prices is unsustainable. Demand will fall off a cliff and the prices of supply may take a nose dive 🤔
The reality is exactly the opposite
Why is CNBC only hyper focused on a few stocks when there are so many others?
They're failing because they grossly inflated the value of what's compiled together to manufacture an EV based on interest alone and the average consumer isn't interested anymore for THAT very reason. Tesla started this foolishness and is proving it to be true by being able to easily offer massive price cuts to move units. The crazy part is once again you can't get this through GM's thick skull and they'll be last ones to conform to trend. No way should that Silverado be outside of the average consumers spending range, the Hummer was ridiculous enough. I've already decided to do my own Silverado conversion for roughly 15-20% of what they're asking, I'm not paying 100K+ for a dam SIlverado, they willfully lose touch and one trip to Michigan will make anyone wonder why they think this is the way, storage lots crammed full of models collecting dust, not moving an inch to rail platforms for deliveries. For the first time ever, I'm really hoping Ford will deliver on price and performance to the consumer and really don't see Farley dropping this ball. Mercedes WILL take the Luxury EV spot, Lucid would do well to partner with them before it's too late, Toyota will eventually take the global economy option spot. Dodge should just sit this out until consumers determine what the clear standard is and push a performance hybrid Ram and Challenger to market, they have nothing other than this to offer yet
China’s BYD and DJI are cooperating to launch a new generation EV that can launch drone from car roof.
there's a reason supermarkets have only a small section devoted to sprouts,, not everyone will only want sprouts , the RV market is the same, Not everyone wants to move to an EV and sees its all a sham . there more expensive, worse on environments, harder to refute, unreliable, full of faults and useless if you live in an apartment have street parking. the future is cleaner fuels and non plug hybrids , the reason the few people have bought up eve so fast is governments push and forcing them on people.
Too much cash needed up front. One car can cost $2 billion. A million cars cost $2 billion plus costs.