Self-driving car technology and electrification startups were once the darlings of venture capital and the corporate world. These two technologies promised billions of dollars in revenue and new avenues for automakers to make money beyond making and selling cars.
With a few exceptions like Waymo and Wayve, the days of VCs printing money are long gone for AVs. But as 2024 began, there was still a buzz of EVs in the air, albeit quieter than before.
As 2024 draws to a close, it's safe to say the topic has become something of a whisper as some EV startups falter and automakers readjust their investment plans.
Demand for EVs began to slow in 2023, and although sales increased overall, the pace of growth was much slower than expected. In 2024, automakers responded. Ford has reversed plans, abandoning plans to build an all-electric three-row SUV and instead opting to equip future vehicles with hybrid powertrains. GM had already cut back on EV spending in 2023, but it made further moves in 2024, recently giving away a stake in its nearly completed Ultium Cells battery plant in Lansing, Michigan, to joint venture partner LG Energy Solutions. Transferred. Stellantis and Mercedes have temporarily suspended plans for an EV battery factory.
Toyota's oft-criticized approach of slowing down EVs and continuing to prioritize gasoline and hybrid vehicles now looks like a wise move.
The results weren't great for EV startups either.
AV, on the other hand, had its moment of hype in the VC sun a few years ago before reality hit. Driverless cars may prove difficult, the business model is unproven, and their backers may not hold up to long-term predictions. Income Bet.
2019 and 2020 saw the first wave of consolidation in the industry. Some AV (and EV) startups have merged with special acquisition vehicles in search of public market funding needed to commercialize their technology. Some stuck with supporters of major automakers. Both strategies faltered in 2022 and 2023, prompting a final scramble for survival: a pivot.
Once focused on the potential of self-driving cars, AV startups are now trying to apply their technology to warehouses, mines and agriculture. However, it turned out that competition was already increasing in these areas. Some companies stuck to their original mission, but with so much focus on defense technology these days, they have turned into dual-use companies.
In other words, 2024 was the year when companies said goodbye to weak startups, took a hard look at their spending, and said, “It's time to move on.''
apple car project
Apple's not-so-secret car project, we didn't know about it. Still, we all felt a sense of loss. Maybe it's because we've been hearing about Apple's promises and vague plans for (possibly) electric self-driving cars for a long time now, a decade since those first plans were leaked. Apple officially announced it in 2024: the car project has been cancelled.
I can't wait for 2025 and the breaking news that this project will be happening again.
arrival
The EV startup, which wants to use microfactories to build commercial electric vans and buses, was once valued at more than $13 billion and backed by Hyundai and UPS. The company went public via a SPAC in 2021, but fell into trouble despite having a $300 million lifeline to rebuild by 2023. Less than a year later, Arrival announced that its UK arm was going into administration, the country's version of bankruptcy.
Parting photo: Troubled EV startup Canoo acquired some of Arrival's assets after it filed for bankruptcy.
cake
Electric bicycles and e-bikes had a brief moment of success during the coronavirus pandemic, but their survival wasn't guaranteed. In February, Swedish Cake filed for bankruptcy. The company, best known for making well-designed bicycles, was apparently in the midst of a funding round. Investor withdrawal tipped its fortunes in the wrong direction. In the weeks that followed, a Florida man who owned a retail store bought most of the U.S. inventory.
But the cake got a second life. The company emerged from bankruptcy and was acquired by Norwegian car dealer Brages Holding AS.
cruise robo taxi
Cruise isn't technically dead. Parent company GM has said the self-driving car company will continue, but it's unclear exactly what form it will take. However, GM is no longer funding Cruise's commercial robotaxi program. The decision left cruise employees, including executives, “blindsided.”
This decision is just beginning to ripple through the organization. Expect more news about Cruise and GM's self-driving plans for 2025.
fisker
Where to start? It's been a strong start to the year for Fisker, with the EV startup struggling to meet internal sales goals and its Ocean SUV being investigated by federal safety regulators over brake loss complaints. It didn't happen. Things got worse from there, including further federal investigations, layoffs, suspension from the New York Stock Exchange, and ultimately bankruptcy by June. Here is the timeline of events: Inside EV startup Fisker collapses: Read some of Sean O'Kane's reporting, including how the company collapsed on the whims of its founder.
Ghost autonomy
Ghost Autonomy, a self-driving software startup, shut down in February. Founded in 2017 as Ghost Locomotion, the startup has gone through several pivots. It ultimately raised $220 million and closed for good.
Lilium
Lilium, an electric vertical takeoff and landing startup, shut down in October after running out of funding. Here are some surprising numbers to consider. The company had raised more than $1 billion from investors before going public on the Nasdaq exchange in 2021 through a reverse merger with blank check company SPAC Qell.
There is still interest in electric aircraft startups. In the past few months, German startup Vaelidion, which develops short-range electric aircraft, closed a €14 million Series A round, Archer raised $430 million to build defense aircraft, and Toyota invested $500 million in Joby Aviation.
However, this sector is not clear, blue, or 22. Turbulence ahead.
north bolt
Swedish battery maker Northvolt announced a bankruptcy filing in the United States in November, and co-founder and CEO Peter Karlsson resigned. The company is popular with investors, having raised $14.26 billion, including a $1.2 billion round in 2023 to expand in North America, according to Pitchbook.
phantom auto
The California startup, which had developed a remote control platform that allowed drivers in remote locations, sometimes thousands of miles away, to take control of vehicles if needed, shut down in March. The company has raised a total of $95 million from a variety of backers, including angel investors such as Bessemer Venture Partners and Maniv Mobility, early-stage VCs, private equity firm InfraBridge, and strategic investors such as ArcBest and ConGlobal.