From Apple Car to Fisker, the biggest fails and fizzles in 2024 transportation

Autonomous car tech and electrification startups were once darlings of the VC and corporate world. The two technologies promised billions of dollars in revenue — and a new way for automakers to make money on top of building and selling cars.

Those VC-money-printing days have been over for AVs for a while now, with a few exceptions. Waymo and Wave. But as 2024 rolled around, there was still a lingering EV buzz in the air, albeit quieter than before.

Now, as 2024 draws to a close, it’s safe to say the noise is more of a whisper, with several EV startups slowing down and automakers readjusting their investment plans.

EV demand started to soften in 2023, and while sales volumes increased overall, the pace of growth was much lower than expected. In 2024, automakers responded. Ford changed his plansthis included abandoning plans to develop an all-electric three-row SUV and instead equip future vehicles with hybrid powertrains. GM, which has already scaled back EV spending in 2023, most recently made further moves in 2024. empties its share at its Ultium Cells battery cell plant in Lansing, Michigan, to its joint venture partner LG Energy Solution. Stellantis and Mercedes stopped the plans In EV battery plants.

Toyota’s often-criticized approach Go slow in EVs Continuing to favor gas and hybrid vehicles already seems like a smart move.

The results haven’t been good for EV startups either.

Meanwhile, AVs had their moment of confusion in the VC sun a few years ago, before reality hit: Driverless cars have proven elusive, the business model is unproven, and those backers may not have the patience for a long-term upfront business. income bet.

The first wave of consolidation swept the sector in 2019 and 2020. Some AV (and EV) startups have teamed up with special purpose buyout companies in search of the public market capital needed to commercialize their technology. Others stuck with big automaker backers. In 2022 and 2023, there were setbacks for both strategies, leading to the final fight for survival: the pivot.

Once focused on opportunities in self-driving cars, AV startups have sought to apply their technology to warehouses, mining and agriculture. But it turns out that these areas have already jumped with competition. Others remained true to their original mission but became dual-use companies Defense technology is very hot these days.

In short, 2024 was the year when weaker startups left and corporates took a hard look at what they were spending on and said, “It’s time to move on.”

Apple car project

Apple’s not-so-secret car project, we never knew you. However, we all felt the loss. Maybe it’s because we’ve been hearing about Apple’s promises and vague plans for an electric and (maybe) autonomous car for a long time — a decade since the first plans leaked. Apple made it official in 2024: the car project was cancelled.

I can’t wait for 2025 and the latest news that this project is up and running again.

Arrival

This EV startup, which wants to use microfactories to produce commercial electric vans and buses, was once valued at more than $13 billion and was backed by Hyundai and UPS. The company went public through a SPAC in 2021 and struggled until 2023 — even A $300 million lifeline aimed at turning the business around. Less than a year later, Arrival announced the UK division enters the administrationthe country’s version of bankruptcy.

Parting shot: Troubled EV startup Canoo, It bought some of Arrival’s assets after the declaration of bankruptcy.

Cake

During the Covid pandemic, ebikes and e-motorcycles had a moment, but it did not guarantee survival. In February, the Swedish company Cake filed for bankruptcy. The company, known for making high-end design bikes, was apparently in the middle of a funding round. The investor’s withdrawal turned his fortunes in the wrong direction. A Florida man with a retail store in the following weeks It bought most of its US inventory.

But the cake got a second life. The company came out of bankruptcy and was Bought by a Norwegian car dealerBrages Holding AS.

Cruise robot

Cruise isn’t technically dead. The self-driving car company will live on, its parent company GM says, but it’s unclear what form it will take. But GM no longer funded Cruise’s focus on commercial robotics software. Decision Cruise staffincluding top managers.

This decision is just beginning to ripple through the organization. Stay tuned for more news on Cruise and GM’s automated driving plans in 2025.

Fisker

Where do we start? The year didn’t start well for Fisker, as the EV startup struggled to meet domestic sales targets and its Ocean SUV was investigated by federal safety regulators over complaints of brake loss. It got worse with more federal investigations, firings, the suspension of the New York Stock Exchange, and finally bankruptcy by June. Here is a timeline of events. Be sure to read some of Correspondent Sean O’Kane’s coverage Inside EV startup Fisker’s collapse: how the company collapsed at the whim of its founders.

Nightmare Autonomy

Ghost Autonomy, an autonomous driving software startup, closed in February. Founded in 2017 as Ghost Locomotion, the startup has gone through several twists and turns. It raised $220 million before it was completely shut down.

Lily

Lilium, electric vertical takeoff and landing starter, closed in October after running out of money. Here is a staggering number to consider. The company raised more than $1 billion from investors before going public on the Nasdaq Stock Exchange in 2021 through a reverse merger with a blank check company called SPAC Gell.

There is still interest in electric aircraft startups. In the past few months, Vaeridion, a German startup developing short-haul electric planes, closed a €14 million Series A, Archer collected 430 million dollars Create a defense plane and Toyota one 500 million dollars investment Enter Joby Aviation.

But it is not clear, blue and for this sector 22. Turbulence ahead.

Northvolt

Swedish battery manufacturer Northvolt announced this in November file for bankruptcy in the US and its co-founder and CEO Peter Carlson resigned. The company was an investor favorite, raising $14.26 billion in 2023, including a $1.2 billion round to expand operations in North America, according to PitchBook.

Phantom Auto

A California startup developing a teleoperation platform that allows a remote driver, sometimes thousands of miles away, to control a vehicle when needed, closed in March. The company has raised a total of $95 million from a mix of backers, including angel investors and early-stage VCs like Bessemer Venture Partners and Maniv Mobility, private equity firm InfraBridge and strategic investors like ArcBest and ConGlobal.