The race to become the next Tesla is heating up. Here's how Rivian, Lucid, and the other top contenders are planning to come out on top.
Mark Matousek
- EV startups have benefited from the hype around the industry in the past two years.
- Some have or are preparing to release their first models.
- There have been plenty of growing pains.
The past two years have been good to electric-vehicle startups. As Tesla's sales and stock price have soared, the goodwill around the company has spread to just about any young competitor, no matter how far they are from delivering their first vehicle.
But now it's time for the next generation of EV-makers to follow through on the hype. One, Rivian, has already started deliveries. Another, Lucid Motors, plans to do so soon. Both companies, though, and many of their peers, have faced growing pains.
Below, you can read more about why this generation of EV startups has excited investors and potential customers and how some have faltered, watching their founders resign amid controversy and attracting scrutiny from the US government.
Rivian is seen as the top EV startup
Rivian has attracted more hype than any other EV startup. It has raised more money than its peers ($11 billion), landed a huge order from Amazon, and was the first to start handing vehicles to customers. RJ Scaringe, the startup's CEO, reminds at least one investor of Jeff Bezos.
But the company has already experienced production delays, and it's acknowledged that even a much-anticipated IPO won't be enough to make it financially self-sustaining.
- Read more:
- Rivian is hoping its IPO blows Tesla's out of the water, but the Amazon-backed startup's S-1 reveals growing pains
- Meet Rivian CEO RJ Scaringe, who's been called the next Jeff Bezos as he electrifies Amazon's delivery vans
- The CEO of EV startup Rivian explains why he thinks it will beat Audi, Mercedes-Benz, and BMW with its first 2 electric vehicles
- Early Rivian investors explain the 3 factors that could make the Amazon-backed startup the next Tesla
Lucid Motors is another leading contender
If Rivian is seen as the leading EV startup, Lucid is generally considered its most promising rival. Led by a former Tesla executive, the startup is preparing to release a luxury sedan that in some ways outdoes its closest competitor, the Tesla Model S. Lucid's June SPAC merger brought in $4.5 billion, the largest sum for an EV-related SPAC merger so far.
But like Rivian, Lucid has had to push back deliveries as it works through supplier issues.
- Read more:
- Lucid insiders worry CEO Peter Rawlinson's 'vendetta' against Elon Musk could undermine the EV startup's bid to be the next Tesla
- Rivian rival Lucid's CEO says he delayed his $77,000 EV by nearly a year because he can't gamble on quality control: 'We have one shot at this'
- Lucid Motors CEO says his debut electric sedan will cost over $100,000 and outmatch Tesla and Porsche with a spacious, luxurious interior
- The CEO of Lucid Motors reveals the important lesson his former boss Elon Musk taught him about leadership
A crowded field of competitors
Rivian and Lucid are just the leaders in a crowded field. In the next few years, consumers and businesses may have a wide range of new brands to choose from, or the harsh realities of the auto industry could winnow the pack to a select few. These startups are fighting to prove that Rivian and Lucid aren't the only EV-makers with a shot at becoming the next Tesla.
- Read more:
- How Faraday Future came back from the brink of death
- Arrival's president reveals how his electric-van startup landed an order from UPS worth up to $1 billion
- Canoo's stock price has plummeted this year amid a management shakeup and an SEC investigation. Here's how its new CEO plans to prove his doubters wrong.
- 17 top execs and engineers who left legacy car companies to fuel the booming electric vehicle industry
Cautionary tales
Already, the current wave of EV startups has produced a few cautionary tales. Nikola and Lordstown Motors have attracted controversy for allegedly exaggerating about their capabilities or the interest their vehicles have received. Each company's founder has resigned in the past year, and the current executive teams are working to reestablish their credibility.
- Read more:
- Nikola founder Trevor Milton is facing criminal fraud charges. Insiders say a history of lies brought down the billionaire once considered the new Elon Musk.
- The CEO of Tesla wannabe Lordstown Motors is out. Insiders say he exaggerated demand and hired interns to do his engineering.
- A 2017 lawsuit shows how electric car startup Lordstown paid outside workers to gin up 10,000 pre-orders per year
The next generation of batteries
The enthusiasm around EVs has extended to one of their key components: batteries. A number of battery startups are hoping to squeeze more capacity out of their cells, which would make EVs more affordable and allow them to drive farther between charges. Some battery companies are trying to master new, unproven chemistries, while others are refining existing formulas.
- Read more:
- The CEO of a Bill Gates-backed battery startup explains how his breakthrough solid-state system could finally make EVs affordable
- How the CEO of a Bill Gates-backed battery startup convinced the tech mogul to invest in his solid-state tech
- 5 EV battery startups poised to challenge Panasonic and LG Chem for dominance of a $129 billion market
READ MORE ARTICLES ON
Popular Right Now
Popular Keywords
Advertisement