Why Do Startups Struggle to Succeed with Electric Trucks and Buses?

In recent years, the world has seen a surge in the production and consumption of electric vehicles (EVs). While cars, helicopters, and scooters seem to be gaining popularity, startups attempting to develop electric trucks and buses continue to fail. This year, two prominent electric bus and battery makers, Proterra and Volta Trucks, went belly up, leaving many wondering why such promising efforts are falling short. While I can't speak as an expert, I believe there are several key factors to consider when it comes to why startups are struggling to succeed with EV trucks and buses.

Lower Volume

The first major factor contributing to the failure of EV truck and bus startups is that these vehicles are typically lower in volume. Building a truck or bus is a much more expensive feat than manufacturing a vehicle like a Model Y, and it can take years for a company to recoup its investment. This is even more true for startups with limited resources and a shorter runway to profitability. Imagine building a bus plant the size of Tesla Fremont, but only producing a couple vehicles per day vs. 1000s.  

Chassis Design and Adaption

Another significant issue is the chassis design and adaptation process. Unlike cars, EV trucks and buses have to meet different safety and construction requirements, making adaptation to these vehicles more complicated. Tesla is an excellent example of this, as it took them six years to mass-produce their semi-trucks. A feat that is still not up and running yet.  

Battery Packs

Battery packs are another critical area where startups struggle. Developing battery packs for trucks and buses is significantly more complex than creating them for cars, as industrial vehicles require much larger batteries. Such batteries are expensive and complicated to produce, making them far less cost-efficient. This poses significant cost burdens for startups; they often need help to create these batteries in large enough volumes to reduce production costs. Most efforts struggle to even create the enclosure or box to house their batteries.  

Competition from Established Giants

Finally, one critical yet often overlooked reason why EV truck and bus startups fail is the fierce competition they face from established industry giants such as Daimler, Blue Bird, and Navistar. These established giants have more substantial pockets and the resources to take on and develop EV trucks and buses. This creates an almost insurmountable barrier to entry for startups.

In conclusion, electric truck and bus startups face several inherent challenges, making it tough to succeed and compete against established industry players. While innovation in this area is essential, it's clear that it's more complex than developing a new EV truck or bus. These startups must overcome the challenges of lower volume, challenging chassis design and adaptation, more significant battery pack production costs, and established industry players' fierce competition. Even with these significant challenges, I remain hopeful that, with the proper support, electric truck and bus startups will find a way to break through and thrive in this promising new world of EVs.

Pic Credit - Electrek Volta Electrek Proterra