EV Startups Face Financial Crisis

At least 18 companies predicted to run out of cash by 2024, with stocks plummeting and bankruptcy declarations on the rise.

At least 18 electric vehicle (EV) and battery startups are predicted to run out of cash by the end of 2024, according to a Wall Street Journal analysis.
Rising costs and production problems have hit these startups hard, with three firms — Lordstown Motors, Proterra, and Electric Last Mile Solutions — already declaring bankruptcy.
The median stock for these startups has nosedived over 80% since their market introduction, wiping out tens of billions of dollars in market value.
The increasing demand for EVs, along with price reductions from market leaders like Tesla, is exerting extra strain on these fledgling firms.
Only four of the EV companies reviewed had a positive cash flow, and 16 companies are projected to run out of cash during 2025 or later.