EV Start-Ups vs LEGACY – Who Has The Biggest Disadvantage?

Legacy Auto Production Start Up


Dana Sinno
Published on January 12, 2023
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Do EV Startups or Legacy Automakers have the largest disadvantage in regards to production and scale of Electric Vehicles?

Here are a few things to consider:

EV StartUp:

*Leadership team/ visionaries

*Raising capital / SPACS

*Building trust and relationships

*Design Core Product that consumers want 

*Partner with tech/manufacturing companies

*Factory builds

*Compete for a piece of market share from established auto companies

*Leverage assets to create additional revenue streams

*Supply chain constraints

*Avoiding Valley of Death: prototype to production

*Volume

*Managing distribution

*Establish consumer purchasing/ servicing network

*Outsource Production or Vertical Integration 

*Charging infrastructure issues

Legacy Auto:

*Massive amount of $ to electrify products

*Production historically quantity (meaning many different models for all demographics $15k through $300k+) How many models will they discontinue/phase out and when?

*R & D focus shift EV

*Refit factories

*Shifting from their moneymakers 

*Education

*Sales model adjustments 

*Network infrastructure for OTA updates

*Hardware / Software / Battery / Technology 

*Supply chain constraints

*Inevitable Workforce reduction

*Loss of service revenue 

*Reliance on suppliers (not vertically integrated)

*Conflicted marketing issues: They have to be Pro-EV without being Anti-ICE because that is where $ is made

*Charging infrastructure issues

Only time will tell, but glad to see so many players in the game.  Consumers for the win!

Go electric  ✌🏼


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