If there was one phrase that captured the vibe and theme of 2024 — no less than 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 by which they now are taking part in starring roles.
Jaguar went in a wholly new polarizing route with a rebranding that received plenty of consideration — and lit social media on fireplace, no less than for a number of days. GM slowed its EV plans and was compelled to alter lanes on software program — an inner restructure accelerated by issues with the Chevy Blazer EV that has had constructive developments. However the automaker’s most placing shift was its resolution to now not fund growth of the Cruise robotaxi.
All over the place we seemed, founders, VCs, and automotive execs had been altering course to reap the benefits of shifting shopper demand and, in lots of instances, to easily survive.
Listed here are the largest matters 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 way of 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 firms. And others, like TuSimple, have pivoted virtually completely 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 continues to be fraught. GM determined to now not fund the Cruise robotaxi growth 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, nevertheless, get a lift due to a booming and hypey AI trade and newfound curiosity within the end-to-end strategy to autonomy (simply ask Wayve). Waymo and Zoox, two well-funded AV firms, 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 check
Legacy automakers like Ford and GM spent billions of {dollars} beefing up their electrical automobile lineups and investing in U.S. battery manufacturing amenities to maintain on high of provide chains. EV gross sales — bolstered by the Biden administration’s EV tax credit score — continued to achieve document highs this yr. However automakers and buyers have feared that gross sales for electrical automobiles, 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 had been pulling again from EVs attributable to strain from hybrids. That pullback would possibly 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 progress. 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 take care of American Lease, the corporate that purchased Fisker’s fleet, to assist homeowners get assist with recall repairs.
Canoo has additionally struggled to take care of sufficient money to function, and in December it started to furlough staff. 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 also be sinking quick — to the purpose the place information 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 way of a particular goal 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 high 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 street. 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 Employees union.
Tesla was in a state of flux as Musk fought to carry on to his $56 billion pay package deal by way of sheer willpower and investor loyalty. The automaker issued mass layoffs this yr, axed its whole Supercharger staff, 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 massive intentions for the electrical vertical takeoff and touchdown (eVTOL) automobiles trade. It felt like each different week there was an announcement as two of the largest 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 massive fundraises as each firms tried to safe additional cash 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 firms burned by way of capital and failed to search out extra funding. German eVTOL startup Lilium filed for chapter after failing to lift sufficient capital to proceed. In December, the corporate shut down and laid off 1,000 staff 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 here 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, no less than 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 horny, smooth 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 all of the sudden, leaving an absolute mess in his wake. Cake and Onyx have been given contemporary possibilities of survival in 2025.
Some startups have managed to discover a strategy to preserve an e-bike enterprise afloat. Simply have a look at Joco. The startup has fought the chances and managed to show its docked e-bike rental service for supply staff into a worthwhile enterprise and has even branched out into constructing battery-charging cupboards.
Right here is one other micromobility must-read of 2024: