The next Telsa: Which players are already lined up?
When we talk about electric vehicles the first thought that pops into mind is Tesla. The American company has ingrained itself so deeply in the minds of the masses that its name has become synonymous with an E.V. Tesla has had such an impact on the automotive world that big players like Porsche, Toyota, Hyundai, and Ford have had to awaken from their slumber and they are forced to revolutionize or fear going obsolete.
Tesla’s forward push has ushered in a new era in the automotive world. Many small new companies have sprouted up all around the world to take advantage of the situation because simply put, EVs are less complicated to build compared to conventional cars.
Let’s glance at some of the EV companies that show huge promise and the will to succeed in the EV sector, although this list surely is not comprehensive and they definitely are not comparable with regard to their target customers. (And yes, Chinese e-mobility start-ups will also play a major role, but we already looked at them in this former article: https://medium.com/auto-mobile-disruption/are-they-taking-over-what-about-chinese-e-mobility-start-ups-on-the-european-markets-a06142bf0975)
Rivian
The one company that deserves to be mentioned in this list is Rivian. The American E.V brand was founded in 2009, and since then, it has taken the world by storm. Rivian made the front-page news when it received investment by Jeff Bezo’s Amazon Inc. However, that isn’t the company’s only meaningful achievement. They are introducing three electric vehicles in the market in the coming months. The first is the R1T pickup truck, then an Amazon van, and finally an SUV. The company has planned to extend its charging network and its production capacity in the coming years. So, things are looking positive for Rivian as they gear-up to compete with the likes of Tesla.
Lucid Motors
Lucid Motors is also an American e-mobility brand that is planning several car launches in the coming years. Lucid makes luxury vehicles, so you know there will be no compromise on quality or comfort in their cars. They have recently built a massive production facility in Arizona, which will undertake all their customer’s demands. The company has recently release the Lucid Air EV, and its success will determine the future of the company in the industry.
Fisker Inc.
The EV revolution has not only attracted traditional vehicle manufacturers and start-ups but has enticed tech companies to take part in the race. Fisker Inc. is one such example. The brand is planning to make an all-electric vehicle soon with the help of Foxconn. The two entities have teamed up to take the fight to the competition, and they are hopeful that with a continuous flow of investment the results will be no less than remarkable.
Sono Motors
Germany is arguably the heart of the automotive world, which is why it would be remiss if no brand from the country was mentioned in this list. Sono Motors is a German EV company that deserves to make the cut. The brand has introduced the Sion car, which uses battery technology in tandem with solar technology to power the automobile. In other words, the car charges itself while you are driving. You won’t need to find charging stations or worry about depleting your vehicle’s battery while on the go. The solar charging concept is not new, but Sono Motors has re-introduced it in the hopes of diversifying the market.
Piech
Piech is a brand that has a lot of far-fetched goals and aims. They hope to make deep inroads in the E.V sector, but the Swiss company is still in the development stage, and you won’t see their car on the roads anytime soon. Piech believes that EVs should have the feel of a real car instead of them being more like apps. It will take a lot of convincing to influence people’s minds, especially since many of them like Tesla’s bespoke nature.
The Piech GT2 is their first car, which takes design hints from Aston Martin. How quick will it be? How long will its batteries last? Will the brand be successful? You will have to wait and see once the GT2 makes its formal appearance in 2022. However, Piech has poached a formidable team which includes the likes of former Volkswagen CEO Matthias Mueller. Other team members have previously worked at VW, Porsche, BMW, and Tesla. The future does look promising, but the company needs to step-up in terms of development.
VinFast
The Vietnamese brand VinFast was launched in the last 5 years with great financial commitment of the richest man in Vietnam and his company Vingroup. VinFast already has the first production-ready vehicle with an internal combustion engine on the market, built in one of the most modern vehicle factories in the world. In the future, however, the company’s global growth is to be based primarily on electric cars. With series production of vehicles already underway, VinFast is ahead of many of its competitors in terms of future market success and can generate profit contributions that will finance growth and the development of future models. VinFast was recently in the news due to a decisive personnel development. With the former Opel CEO Michael Lohscheller, a very experienced automotive expert is to lead the automotive division of Vingroup in the future. We will see to what success this leads.
Rimac
Rimac Automobili is no stranger to the market. In fact, Croatian Mate Rimac is one of the pioneers of electric mobility in sports cars. Back in 2011, the company presented its first e-sports car at the Frankfurt Motor Show (IAA). In recent years, Rimac has already successfully produced sports cars in small series and sold around 150 vehicles per year of its 1912 hp “Nevera” at a price of around 2 million euros. Thanks to the expertise it has built up, the company has in the meantime been able to build up a great deal of know-how and has thus attracted the attention of Porsche for several years. Not only does Porsche AG now hold a 24 percent stake in Rimac, there has also been cooperation in product development, where Porsche has already drawn on the expertise of the Croatian start-up in the field of electromobility on several occasions. With the latest deal, Rimac is now finally a name to know: In July 2021, Rimac and Porsche established a joint venture in which Porsche parent company Volkswagen will contribute the Bugatti brand. With 55%, Rimac is now the majority owner of Bugatti, one of the most traditional sports car brands in the world, and has the task of successfully leading the brand into the future.
Faraday Future
There was another IPO of an electric mobility start-up in the summer of 2021 on the American NASDAQ by Faraday Future. The American-Chinese company, headquartered in California, is notable for its personnel: the management team includes a not insignificant number of former BMW and Tesla employees who are among the pioneers of electromobility. After a successful start, Faraday Future almost went under in the wake of its Chinese shareholders in recent years. In the meantime, however, the company seems to have recovered from this and, under the leadership of CEO Carsten Breitfeld, to have set the right course for the future. With the IPO, the financing of the production start of the crossover SUV FF91, planned for 2022, with its 772 kW (1,050 hp) output and over 600 km range now seems to be secured. Thanks to partnerships with contract manufacturers and, among others, the Chinese carmaker Geely (which is also Volvo’s majority owner), nothing stands in the way of successful series production for the time being.
Canoo
The Californian company Canoo also emerged from the Faraday environment. Originally founded by two German managers who met at the competitor Faraday, both the management team and the shareholding structure have since changed. Canoo plans to launch an electric minivan as a “lifestyle” vehicle for the first time in 2022. Meanwhile, a pick-up and small van have also been announced. The road to this point has been rocky for Canoo so far. Originally, a partnership with Hyundai was announced. This has since been terminated and the company is planning its own American plant. For the European market, the Dutch manufacturer VDL Nedcar is reportedly to take over production. The originally planned “completely new business model” with a focus on subscription models has also faded somewhat into the background and the manufacturer’s argumentation is strongly based on a total cost of ownership approach with inexpensive vehicles that are unbeatable in terms of maintenance. Whether the schedule is still realistic is not clear to me. In any case, the choice of location for the American plant in summer 2021 suggests that more extensive production will still be possible here in 2022.
Togg
Even government supported players enter the market vor electric cars. Togg, a newly established Turkish car maker is such an example. This project for Turkey’s first electric vehicle was significantly promoted by President Erdoğan. The company’s ambitions are quite high: “As TOGG, we develop electric, autonomous capable and connected vehicles with a mobility ecosystem that encompasses these technologies. Thanks to this ecosystem, we aim to contribute to a clean future and facilitate the lives of large masses by not producing any harmful emissions.”
Final Thoughts
Setting up a new car maker isn’t easy and hasn’t been successful in most cases (and that hasn’t changed with e-mobility). Some interesting players have started — motivated by Tesla’s success and the traditional players struggling for some years to move towards the future. But yet, they are not ready and meanwhile all existing Automotive players have understood that they need to move and have taken the right steps. As such, it’s most likely that many upcoming bands will fail, falling prey to the competition. Most new entrants will start production around 2022. That’s the point when plans will meet reality and the customers have to choose.
