As Ford has been getting ahead with its F-150 lighting. The recently registered Nasdaq start-ups are at risk if they don’t keep up with the scale. Tesla is known to lead the EV industry, eventually leading to multiple start-ups also joining in. However, without speeding up the manufacturing process. Then many start-ups are expected to be squeezed out from the race with traditional car makers.
Global fleet
TE connectivity is a transportation solutions provider for many start-ups. Their president, Steven Merkt said, “Everyone is looking for their golden ticket. If you don’t have scale, you’re going to get squeezed out pretty quick.”
Start-ups have been aligning with powertrain manufacturers, or battery providers, and other such electric vehicle components-related companies. However, manufacturing remains a challenge even for Tesla. Which successfully will have 8 Giga factories, with two located outside of its home country.
A giant order for the start-ups can boost their marketing and future sales. And in recent times, investors have been changing their paths. While some are having a smoother journey with attaining investments, others are working with other methods to get their first orders.
Getting the first orders
Companies like Rivian and Arrival have been getting orders. And are working towards increasing their manufacturing capacity. More than 100,000 Rivian vans are ordered before the company even started its deliveries.
Furthermore, Arrival received more than 10,000 orders.
Besides the electric vehicle fleet, the major companies are getting into autonomous vehicles. Looks like the industry is picking up faster than expected. European senior fleet director at Deutsche Post unit DHL Express, Thore Meurer said, “The window of opportunity is closing.”
DHL Express is known to have been talking with the start-up Arrival. However, they announced their purchase of 89 cars from another start-up Lightning eMotors. Further, the company is going for two Asian companies for their Asian fleet.
As said by DHL Express, “If another startup comes to market with a van two years from now, there will be no opportunity left for them. By then, every big player will have an electric van on the market.”
Contradicting views
It is one of those times for investors, customers, and electric vehicle enthusiasts. Where choosing one company and identifying the next “Tesla” from the start-ups can be confusing.
While DHL Express seems to back out, UPS is still hoping to get their vans from Arrival. Also, the UPS vice president asked Arrival, “When can we drive one?”
Founder of Stockholm-based Volta Trucks, Carl-Magnus Norden said, “You always have a confidence gap to bridge,”
Additionally, for most companies going public through the SPAC deal, is like Golden Ticket. But without large manufacturing capacity, buyers might not wait till the rivals get ahead and purchase from other companies.
When the major automakers who have been in the manufacturing industry for long come to the picture. Most things change, in terms of quality and speedy manufacturing, the traditional automakers might have n upper hand.
Moreover, most of the traditional companies have come to the EV sector late. They don’t seem to slow down anytime soon.
