If there was one phrase that captured the vibe and theme of 2024 — at the least within the transportation sector — it was “enterprise whiplash.” Legacy automakers modified route on their all-EVs-or-bust technique, startups pivoted, and a few Silicon Valley VCs and executives adjusted their views on a altering political panorama during which they now are enjoying starring roles.
Jaguar went in a wholly new polarizing route with a rebranding that obtained quite a lot of consideration — and lit social media on fireplace, at the least for just a few days. GM slowed its EV plans and was compelled to vary lanes on software program — an inside restructure accelerated by issues with the Chevy Blazer EV that has had optimistic developments. However the automaker’s most hanging shift was its determination to now not fund improvement of the Cruise robotaxi.
In all places we regarded, founders, VCs, and automotive execs have been altering course to make the most of shifting shopper demand and, in lots of instances, to easily survive.
Listed below are the most important subjects and tales in transportation in 2024.
Autonomous automobiles: Pivots, survivors, and scale
The buzzy years of autonomous automobile tech — from 2016 to 2020 — are lengthy gone, and the hype cycle has introduced us by the trough of disillusionment. A handful of remaining AV startups, together with Ghost Autonomy and Phantom Auto, which had already pivoted, took their ultimate breaths in 2024. Different AV startups took a cue from their brethren in different sectors and turned to protection, formally changing into dual-use corporations. And others, like TuSimple, have pivoted virtually totally away from creating autonomous know-how and as a substitute have moved to embrace *checks notes* AI animation and gaming.
The trail to a business robotaxi enterprise remains to be fraught. GM determined to now not fund the Cruise robotaxi improvement program; the automaker will now use that tech and expertise to incrementally enhance its hands-off superior driver-assistance system and ultimately introduce private autonomous automobiles.
AVs did, nonetheless, get a lift due to a booming and hypey AI business and newfound curiosity within the end-to-end method to autonomy (simply ask Wayve). Waymo and Zoox, two well-funded AV corporations, are nonetheless on the business robotaxi path. And naturally there’s Tesla, which this yr revealed its Cybercab prototype with plans to start out manufacturing in 2025 or 2026. CEO Elon Musk additionally promised to unleash “unsupervised FSD” and launch a robotaxi service in California and Texas subsequent yr, however we’re taking these guarantees with a heavy dose of skepticism given Musk’s penchant for lacking deadlines.
Different AV must-reads of 2024:
EVs are put to the take a look at
Legacy automakers like Ford and GM spent billions of {dollars} beefing up their electrical automobile lineups and investing in U.S. battery manufacturing services to maintain on prime of provide chains. EV gross sales — bolstered by the Biden administration’s EV tax credit score — continued to succeed in file highs this yr. However automakers and buyers have feared that gross sales for electrical vehicles, which accounted for 8.9% of complete auto gross sales within the third quarter, haven’t risen on the tempo they’d hoped for. Tesla even noticed its personal income drop in the beginning of the yr, with Musk noting that automakers have been pulling again from EVs resulting from strain from hybrids. That pullback may simply proceed into 2025 with the incoming administration’s plans to chop the EV tax credit score.
In the meantime in EV startup land, the SPAC mannequin has continued to show unsuccessful for driving long-term enterprise development. We chronicled the messy downfall of Fisker — which crumbled underneath its founders’ whims — together with how the startup left its HQ in full disarray and needed to signal a cope with American Lease, the corporate that purchased Fisker’s fleet, to assist house owners get assist with recall repairs.
Canoo has additionally struggled to take care of sufficient money to function, and in December it started to furlough employees. Maybe the startup’s cash troubles got here from unsustainable spending habits, like spending double Canoo’s annual income on CEO Tony Aquila’s non-public jet or buying the belongings of its bankrupt peer Arrival.
Faraday Future, regardless of elevating over $1 billion when it merged with a SPAC in 2021, can be sinking quick — to the purpose the place knowledge mining firm Palantir now owns an 8.7% stake within the firm after Faraday was unable to pay for providers rendered.
One of many solely new EV gamers that didn’t go public by a particular objective acquisition merger was Rivian. Whereas Rivian hasn’t had the smoothest run since its record-breaking IPO, the EV maker hit some main milestones in 2024, albeit with some pace bumps alongside the way in which, together with a collection of lawsuits alleging prime executives of harassment.
Rivian unveiled in March its next-generation R2 SUV and a shock R3 hatchback. In the summertime, Rivian’s path to survival grew to become linked to having the ability to promote its revamped R1T pickup and the R1S SUV at a revenue to maintain itself lengthy sufficient to get its cheaper R2 SUV on the highway. Rivian even snagged a $6.6 billion mortgage to restart manufacturing on its Georgia plant, though it seems that deal was helped alongside due to a secret settlement with the United Auto Staff union.
Tesla was in a state of flux as Musk fought to carry on to his $56 billion pay bundle by sheer dedication and investor loyalty. The automaker issued mass layoffs this yr, axed its total Supercharger group, deserted plans to construct a $25,000 EV, oversaw seven Cybertruck recollects, and unveiled its robotaxi prototype.
Different EV must-reads of 2024:
eVTOLs are nonetheless attracting buyers
This was a yr of huge intentions for the electrical vertical takeoff and touchdown (eVTOL) automobiles business. It felt like each different week there was an announcement as two of the most important gamers — Joby Aviation and Archer Aviation — shared plans for future business electrical air taxi launches beginning in 2025.
It’s additionally been a yr of huge fundraises as each corporations tried to safe more money to attain Federal Aviation Administration certification and launch business air taxi providers in 2025. Joby, for instance, first secured a $500 million bag from Toyota, then raised $222 million earlier than launching a $300 million public providing. Archer not too long ago raised $430 million and teamed up with Anduril to dive into protection — a theme we’re anticipating to proceed into 2025 as protection tech heats up. And Beta Applied sciences raised a $318 million Collection C.
There have been additionally loads of partnerships between eVTOL startups and extra conventional air carriers — like Beta’s current win with Air New Zealand — and the event of vertiports in key city areas throughout the U.S., Europe, and Asia.
Not each startup has been so fortunate, although, as corporations burned by capital and failed to search out extra funding. German eVTOL startup Lilium filed for chapter after failing to boost sufficient capital to proceed. In December, the corporate shut down and laid off 1,000 employees however seems to have gotten a last-minute lifeline from an investor. Keep tuned.
Subsequent yr, 2025, would be the yr we’ll see if the businesses that stay can safe correct FAA approval and start to make a enterprise out of eVTOLs.
Listed below are another eVTOL must-reads of 2024:
Micromobility wobbles ahead
The hype over shared micromobility has lengthy since died. This yr noticed the final gasps of consolidation, pivots, and some survivors.
Tier and Dott lastly merged, and Lime continued on its regular path to, if not constant profitability, at the least sustainability and market dominance.
VanMoof’s chapter in 2023 revealed how troublesome it’s to scale a brand new e-bike enterprise, regardless of a shopper urge for food for attractive, modern e-bikes. Cake filed for chapter in the beginning of the yr, and Onyx Motorbikes was on the verge of chapter when its 37-year-old proprietor died instantly, leaving an absolute mess in his wake. Cake and Onyx have been given contemporary probabilities of survival in 2025.
Some startups have managed to discover a option to maintain an e-bike enterprise afloat. Simply take a look at Joco. The startup has fought the percentages and managed to show its docked e-bike rental service for supply employees into a worthwhile enterprise and has even branched out into constructing battery-charging cupboards.
Right here is one other micromobility must-read of 2024:
