TO THE EDITOR:
“The EV startup boom is over. Companies are now trying to avoid a bust” (autonews.com, March 16) rightfully points out the difficulties that several small electric vehicle companies are facing and that some may not survive. However, the article fails to provide two important points of context.
First, the likelihood of startups succeeding in the automotive sector is minuscule: Only Tesla has survived as an automotive startup to become a mass manufacturer in the U.S. since Chrysler, which was founded in 1925, did it. The fact that several EV startups are in danger of failing should not be construed necessarily as a reflection of the EV industry specifically. Mass manufacturing in general, and automotive in particular, is a hard and capital-intensive business, and failure is quite likely.
Second, the major OEMs are making real efforts to catch up to Tesla, with many new electric models becoming available with each new model year. The article implied that the EV industry was suffering, whereas the market share of EVs is expected to go from 5.6 percent in 2022 to 11 percent or higher in 2023, according to a J.D. Power forecast. While some EV startups are suffering, many are not. (Lucid comes to mind, although it has had its own challenges.) The EV industry as a whole is actually quite healthy in terms of sales and consumer interest, both in the U.S. and globally.
JEFFREY WISHART, Science Foundation Arizona fellow, Arizona Commerce Authority, Phoenix
The writer leads research in advanced mobility areas of connected and automated vehicles, zero-emission vehicles and micromobility.
