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
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Want to make extra money outside of your day job? Take CNBC’s new online course How to Earn Passive Income Online to learn about common passive income streams. Register today and save 50% with discount code EARLYBIRD: https://cnb.cx/3Iwblnk
Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC on Threads: https://cnb.cx/threads
Follow CNBC News on X: https://cnb.cx/FollowCNBC
#CNBC
Why So Many EV Companies Fail
