Burning cash, commercial EV startups rush to deliver vehicles
Others have already struggled, however.
ELMS filed for bankruptcy in June, citing insufficient funding, while Lordstown had to sell assets to Taiwanese contractor Foxconn.
In May, Canoo revealed “substantial doubt” about its ability to continue in business, but recently received a boost when Walmart ordered 4,500 vehicles.
Getting more money might be difficult.
“The current market is not an ideal market to raise capital,” said Dakota Semler, CEO of Los Angeles-based Xos, which already has 200 electric trucks operating on US roads for customers, including subs. – delivery contractors from Amazon.
Xos had $132.7 million in cash at the end of March and can raise an additional $125 million through a share purchase agreement with a unit of US investment firm Yorkville Advisors.
Legacy automakers are turning up the heat.
FedEx has 150 GM-branded Brightdrop electric trucks making deliveries around Los Angeles. “It feels like we’re in the future now,” FedEx driver Nelson Granados, 28, told a Reuters reporter as he made deliveries on a ride in a BrightDrop EV.
FedEx has ordered 2,500 BrightDrop trucks, boosted by a combination of the company’s 18-month-old technology and GM’s manufacturing muscle, FedEx chief sustainability officer Mitch Jackson told Reuters.
Potential new entrants have taken notice.
UK startup EV Bedeo makes electric powertrains for vans for Stellantis and said earlier this year it was talking to investors about building its own vans.