Why So Many ELECTRIC VEHICLE Companies Are Going out of Business

In 2001, the dot-com bubble began to burst. And it all started with the euphoria among venture capitalists who invested their capital in technology companies with the objective of obtaining large profits, since these were companies linked to the new Internet sector; the new economy of the 21st century. However, the expectations of success of these .com companies were greater than the reality of the market, and most went bankrupt, when they did not make a profit and no more financing was available. More than two decades later, another bubble seems to be bursting, this time in the electric vehicle sector. A few years ago, electric vehicle start-ups had the best prospects. Today, however, most of these companies are focused on survival. Even the world's most valuable company, Apple, in early 2024 abandoned its project to build an electric car. Also, according to an analysis of Wall Street Journal of 43 companies analyzed electric vehicles and batteries that went public between 2020 and 2022, five have filed for bankruptcy or have been acquired, and 18 are at risk of running out of cash at the end of 2024. These companies include large ones such as Nikola and Fisker, which is likely to go bankrupt in the next few weeks. These companies attracted investors with bold promises to transform the industry with their electric trucks and SUVs. So the questions are: why are so many electric vehicle companies going out of business? Why won't they be able to compete with Tesla? And why is demand for electric vehicles lower than expected?
Some sources of interest:
- CNBC (2024). Why So Many EV Companies Fail
• Why So Many EV Compani...
- CNN Business (2024). How EVs became such a massive disappointment
edition.cnn.com/2024/02/25/ca...
- Wall Street Journal (2023). These Tesla Wannabes Are Running Out of Road
www.wsj.com/business/autos/el...
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