Financial outlook of EV startups darkens

Posted by JP Murmann | Dec 9, 2024 | Battery, Business Models, Consumer Trends, Cost Changes | 0 |

The WSJ reports:

“Swedish-based battery maker Northvolt became the latest casualty last week, filing for Chapter 11 after BMW canceled a key order.

A Journal analysis of 54 publicly traded EV and battery startups shows an increasingly dire financial situation. Seven companies have already filed for bankruptcy. Of 36 operational companies with sufficient data for analysis, three-quarters are losing money and 13 are projected to run out of cash by next summer.

Even shares of more stable startups, such as Rivian Automotive and Lucid GroupLCID 0.46%increase; green up pointing triangle, are down nearly 50% this year as they face an increasingly challenging outlook”

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About The Author

JP Murmann

Johann Peter Murmann is Chair and Professor of Strategic Management at the University of St. Gallen. He received a BA in Philosophy with Honors from the University of California at Berkeley and a Master’s and PhD degree with distinction in Management and Organizations (1998) from Columbia University. Professor Murmann mainly focuses his award-winning research activities on systematic examination of the ways companies gain or lose competitive advantage over long periods of time. He now researchers with his team who companies can improve their forecasts.