These Tesla Wannabes Are Running Out of Road

These Tesla Wannabes Are Running Out of Road
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Electric-vehicle startups were flying high just a few years ago. Now many are focused on survival.

At least 18 EV and battery startups that went public in recent years were at risk of running out of cash by the end of 2024 as of their most recent filings, according to a Wall Street Journal analysis. They include companies such as 

Nikola NKLA -8.24%decrease; red down pointing triangle and 

Fisker FSR -10.13%decrease; red down pointing triangle, which attracted investors with bold promises to transform the industry and fight climate change with their electric trucks and SUVs.

That was before they stumbled amid rising costs and manufacturing problems.

Three companies—

Lordstown Motors RIDEQ 4.35%increase; green up pointing triangle

Proterra PTRAQ -4.62%decrease; red down pointing triangle

 and 

Electric Last Mile Solutions ELMSQ -35.53%decrease; red down pointing triangle

—have filed for bankruptcy. Battery maker Romeo Power and charging firm Volta have been sold at a fraction of their valuations when they went public. Several of those remaining say they are working to reduce costs and have since raised capital.

The median stock among the companies that the Journal evaluated is down more than 80% from its market debut, and even further from its peak. The slide has wiped out tens of billions of dollars in market value in just a couple of years.  

“It was by far the most insane bubble I have ever seen,” said Gavin Baker, chief investment officer at Atreides Management.

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