In the race to become the next Tesla, many companies have emerged in the electric vehicle (EV) industry. However, not all of them have been able to keep up with the big players and secure a top position. Here are three EV companies that had high hopes but are unlikely to make it into the top tier of the EV space.
Firstly, we have Workhorse (NASDAQ:WKHS), an embattled EV company that is currently struggling to survive. The early days of a fast-evolving industry like EVs often lead to smaller players being unable to keep up with the sector’s consolidation. Workhorse’s vehicle business failed to generate meaningful commercial revenues, and now the company is attempting a longshot pivot to a drone business. If this doesn’t show immediate results, Workhorse could follow in the footsteps of its former subsidiary, Lordstown Motors, which filed for bankruptcy earlier this year.
Next, there’s Arcimoto (NASDAQ:FUV), an Oregon-based EV company that commercializes a two-person, three-wheeled electric vehicle known as the Fun Utility Vehicle (FUV). However, FUV stock has seen a significant decline, and the company has resorted to share dilution to stay afloat. With limited revenues and the niche appeal of its product, Arcimoto is unlikely to become a major player in the EV market.
Lastly, there’s ElectraMeccanica Vehicles (NASDAQ:SOLO), which faced skepticism from analysts due to its attempt to commercialize a three-wheeled, one-person electric vehicle. The recall of its SOLO G2 and G3 vehicles due to a safety defect further hurt the company’s credibility and momentum. With limited consumer interest, the failed merger attempt with a UK truck company, and the recall, SOLO stock is on a dead-end street.
These three companies serve as examples of smaller players in the EV industry that have struggled to compete with the big dogs. While the industry has immense potential, it also comes with risks for those who can’t keep up with the rapid changes and demands. As the EV space continues to evolve, only the strongest and most innovative companies will secure a top position.
Sources:
– InvestorPlace – Stock Market News, Stock Advice & Trading Tips
