Electric vehicles appeared as a revolutionary technology in the automotive industry. With passing years they have gained popularity worldwide due to their efficiency, high speed, and zero-emission feature.
One of the names among the top-rated electric vehicle manufacturers (and the first one) is Tesla. With a market capitalization of $107 billion in January 2020, it stands second behind Toyota, among the most valuable auto companies globally.
However, alongside fast Tesla growth, new companies have also entered the EV market, intending to become “The Next Tesla”.
Start-Ups Planning to Compete Tesla
While writing this blog in the corona crisis, many of the startups below are experiencing financial difficulties. Still, there is a lot of hope that these companies will grow into a large EV brands.
Fisker, a Los Angeles-based automotive company, will sell its first electric car, Ocean crossover SUV by the end of 2022. The price will be around $40,000.
Earlier, Fisker Automotive ended up in bankruptcy in its effort to manufacture its first EV. However, this time the company has adopted a different strategy to create and finance its product.
Fisker Inc. is Fisker’s new venture that is merging with Spartan Energy Acquisition. It is backed by Apollo Global Management, which is a private equity firm. By signing a USD 2.9 billion deal with the firm, Fisker Inc would become a publicly-traded company.
Rivian is expected to become one of the strongest competitors of Tesla in the future. Backed by well-known investors like Amazon and Ford, Rivian managed to raise $ 2.5 billion in funding.
Previously, it collected approximately $700 million and later $500 million as funds. Rivian has planned to start production with off-road-capable pickup, the SUV, and R1T electric pickup, whereas work on R1S will start next year.
Rivian has also decided to produce electric delivery vans. In this regard, Amazon has helped the startup to establish as a brand in the market. Amazon has made a massive investment in Rivian and ordered 100,000 electric delivery vans from the company.
Nikola mainly aims to deal in semi-trucks that involve pure-electric and the hydrogen-powered technology to generate electricity.
The company is also manufacturing a pickup truck, the Badger. It will combine stored battery electricity and hydrogen-powered electricity to run the vehicle. With such a combination, the Badger will cover a distance of 600 miles until another refill is needed.
According to Nikola, Badger will be manufactured after partnering with another giant automaker. However, Nikola has made no announcement regarding deal finalization.
Faraday Future is a Los Angeles-based company, another name among the startups willing to challenge Tesla in the automotive industry.
Faraday gained popularity in 2017 after launching its first EV, named FF91. The luxury model was specifically designed for a fantastic driving experience. However, the company’s growth slowed down, and it became bankrupt in October 2019. The case has settled now after reaching an agreement with creditors.
The sale of FF91 will begin after nine months of the completion of the fundraising. According to Faraday, it will manufacture FF91 in Hanford, California. However, the news is not confirmed yet.
Byton is a Chinese automotive company that aims to produce a mid-size electric SUV. The vehicle’s prominent feature will be its 48-inch horizontal screen which will be the same in size as that of the dashboard.
An iPad-sized touchscreen will be present on the car’s steering wheel. The automated car will be fully controllable with voice commands and hand gestures.
For now, Byton has postponed the operations due to fundraising issues created by the pandemic attack. Byton has not announced as to when the production would begin.
Lucid Motors was established in 2007. The company has planned to produce a luxury vehicle, the Air in September. This upcoming vehicle will be capable of covering over 400 miles and can run at a speed of 60 miles per hour within 2.5 seconds. The manufacturing cost will be around $100,000 or even more.
In December 2019, Lucid started producing Air at its manufacturing facility based in Casa Grande, Arizona. The initial phase of the production is expected to complete by the end of 2020.
This company is manufacturing an electric pickup worth $52,500, known as Endurance. The primary intention is to use the truck for commercial fleets.
The construction will take place in a GM plant present in Lordstown, Ohio. GM has granted an emergency loan amounting $40 million to start the pickup production.
Additionally, the company is trying to collect $450 million funds more to support the manufacturing process.
Do you think a ‘real’ competitor for Tesla is born?