- Auto executives have talked a lot about electric cars in recent years.
- Now 2022 is the year of the stock, said venture capitalists who spoke to Insider.
- Here’s what VCs said to look for in electric cars next year.
Venture capitalists watching the electric car industry say 2022 is when rubber meets the road.
Over the past 18 months, investors and consumers alike have heard a lot about the global move towards electric vehicles. In China and Europe, electric cars are already taking off, driven by emissions regulations and the focus on tackling climate change. And although adoption in the United States is lagging behind, electric vehicles could account for about a third of light vehicle sales here by 2030, according to industry expert IHS Markit. predicted in August.
The automakers here are committed billions of dollars and revealed dozens of new electric models in the years to come as proof of their commitment to electrification. they dedicate electric vehicle manufacturing plants, explore new partnerships to secure the supply they need for the transition, and run to accelerate charge availability (one of the biggest barriers to widespread adoption).
VCs who spoke to Insider said they expect those promises to finally take off in 2022.
“2022 will be the year electrification hits fans,” said Meir Dardashti, director of Maniv Mobility company in Tel Aviv, Israel. “It’s actually going to happen. People will start to buy these vehicles, especially in Europe but also in America.
Whether automakers have the success of electric vehicles next year could dictate the trajectory of electric vehicle penetration in the United States in the future. Here are three things VCs say you can expect next year.
It’s a golden moment for electric vehicles, said Greg Reichow, partner at Eclipse Ventures in Palo Alto, Calif.
“Traditional automakers have gone from skepticism to grudging acceptance to now embrace electric vehicles in many ways,” Reichow said. “Startups that have identified a single market have an opportunity to do very well. “
Customers and investors await first deliveries of nearly 200,000 Ford F-150 Lightning electric pickup Reservations. Deliveries of the GMC Hummer pickup will continue well into the new year. And reports say the Cadillac Lyriq The SUV is expected to reach customers in early 2022.
On the startup side, customers expect more deliveries of the flagship R1T pickup from Rivian, a competitor to the Lightning and Hummer. The company said in a recent report on its results that it has delivered 652 vehicles so far, including two R1S SUVs. Its other startup EV Lucid will continue to ship the Air Dream Edition luxury sedan and may roll out the cheaper Air Pure later in the year.
Tesla’s Cybertruck remains to be seen. The automaker says it could happen as early as the end of 2022. Meanwhile, struggling nascent Lordstown has pledged to start delivering its first Endurance pickup in Q3 after experiencing production delays. Production on the Fisker Ocean is (for now) slated to start in November.
Big talk, now action
Automakers will be forced to keep other aspects of their electric car promises in 2022.
“Initially, we had big statements about big investments, and there were questions in the market about how seriously people were going to take this,” said Gabe Cunningham, director of Fontinalis Partners in Detroit. “It became evident that these big investments were backed by executives and that they were really serious about diving into electric vehicles.”
Automakers must now look for ways to deliver on these sweeping promises. They need to secure the lithium and other rare earths needed for millions of electric vehicle batteries. They also need to be proactive in conversations about lowering the overall cost of their electric models to make them more accessible to the next segment of buyers and play a role in building the nationwide charging network.
To do this, they could pursue more high-profile partnerships and joint ventures as they run to justify the huge sums of money investors have put into the industry.
Getting new models that consumers genuinely want off the assembly lines is one thing. Providing them with a pleasant shopping experience and the necessary charging infrastructure is another.
No more commotion
Despite the mix of electrics expected from historic automakers and startups next year, some of the fledgling companies might find they’ve found their niche with their more established competitors – and the reality of an industry with fees. Huge overheads – said Alexei Andreev, CEO of AutoTech Ventures in Menlo Park, Calif.
The industry has already taken stock of electric vehicle startups. Companies like Faraday future, Nikola Motors, and Lordstown have had problems, much like Tesla in its early days. With even more entrepreneurs tapping into the EV business in hopes of becoming the next Elon Musk, 2022 could shed light on what just won’t do it in the long run.
“The question is: do we have enough room for new entrants in an environment where incumbents are growing in strength? Said Andreev.