If there was one phrase that captured the vibe and theme of 2024 — not less than within the transportation sector — it was “enterprise whiplash.” Legacy automakers modified course 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 during which they now are taking part in starring roles. 

Jaguar went in a wholly new polarizing course with a rebranding that obtained plenty of consideration — and lit social media on fireplace, not less than for a number of days. GM slowed its EV plans and was pressured to vary lanes on software program — an inside restructure accelerated by issues with the Chevy Blazer EV that has had constructive developments. However the automaker’s most placing shift was its determination to not fund growth of the Cruise robotaxi.

In all places we appeared, founders, VCs, and automotive execs had been altering course to benefit from shifting client demand and, in lots of circumstances, to easily survive. 

Listed below are the most important 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 means of the trough of disillusionment. A handful of remaining AV startups, together with Ghost Autonomy and Phantom Auto, which had already pivoted, took their last breaths in 2024. Different AV startups took a cue from their brethren in different sectors and turned to defense, formally changing into dual-use corporations. And others, like TuSimple, have pivoted virtually fully away from creating autonomous expertise and as a substitute have moved to embrace *checks notes* AI animation and gaming. 

The trail to a business robotaxi enterprise remains to be fraught. GM decided to no longer fund the Cruise robotaxi development program; the automaker will now use that tech and expertise to incrementally enhance its hands-off superior driver-assistance system and finally introduce private autonomous automobiles. 

AVs did, nonetheless, get a lift because of a booming and hypey AI business and newfound curiosity within the end-to-end strategy to autonomy (simply ask Wayve). Waymo and Zoox, two well-funded AV corporations, are nonetheless on the business robotaxi path. And naturally there’s Tesla, which this 12 months 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 12 months, 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 succeed in document highs this 12 months. However automakers and buyers have feared that gross sales for electrical automobiles, which accounted for 8.9% of total auto sales within the third quarter, haven’t risen on the tempo they’d hoped for. Tesla even noticed its personal earnings drop at the beginning of the 12 months, with Musk noting that automakers had been pulling again from EVs attributable to pressure 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 development. We chronicled the messy downfall of Fisker — which crumbled below its founders’ whims — together with how the startup left its HQ in complete disarray and needed to signal a take care of American Lease, the corporate that purchased Fisker’s fleet, to assist homeowners get help with recall repairs.   

Canoo has additionally struggled to take care of sufficient money to function, and in December it started to furlough workers. Maybe the startup’s cash troubles got here from unsustainable spending habits, like spending double Canoo’s annual revenue 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 be sinking quick — to the purpose the place knowledge mining firm Palantir now owns an 8.7% stake in the company after Faraday was unable to pay for companies rendered. 

One of many solely new EV gamers that didn’t go public by means 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 best way, together with a collection of lawsuits alleging top 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 loan to restart manufacturing on its Georgia plant, though it seems that deal was helped alongside because of a secret settlement with the United Auto Staff union. 

Tesla was in a state of flux as Musk fought to carry on to his $56 billion pay package by means of sheer dedication and investor loyalty. The automaker issued mass layoffs this year, axed its entire Supercharger team, deserted plans to construct a $25,000 EV, oversaw seven Cybertruck recalls, and unveiled its robotaxi prototype. 

Different EV must-reads of 2024: 

eVTOLs are nonetheless attracting buyers

This was a 12 months of massive intentions for the electrical vertical takeoff and touchdown (eVTOL) automobiles business. It felt like each different week there was an announcement as two of the most important gamers — Joby Aviation and Archer Aviation — shared plans for future business electrical air taxi launches beginning in 2025.

It’s additionally been a 12 months of massive fundraises as each corporations tried to safe more money to realize Federal Aviation Administration certification and launch business air taxi companies in 2025. Joby, for instance, first secured a $500 million bag from Toyota, then raised $222 million earlier than launching a $300 million public offering. Archer lately raised $430 million and teamed up with Anduril to dive into protection — a theme we’re anticipating to proceed into 2025 as defense tech heats up. And Beta Technologies raised a $318 million Series C. 

There have been additionally loads of partnerships between eVTOL startups and extra conventional air carriers — like Beta’s latest 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 corporations burned by means of capital and failed to search out extra funding. German eVTOL startup Lilium filed for chapter after failing to boost sufficient capital to proceed. In December, the corporate shut down and laid off 1,000 workers however seems to have gotten a last-minute lifeline from an investor. Keep tuned. 

Subsequent 12 months, 2025, would be the 12 months we’ll see if the businesses that stay can safe correct FAA approval and start to make a enterprise out of eVTOLs.

Listed below are another eVTOL must-reads of 2024: 

Micromobility wobbles ahead

The hype over shared micromobility has lengthy since died. This 12 months noticed the final gasps of consolidation, pivots, and some survivors. 

Tier and Dott finally merged, and Lime continued on its regular path to, if not constant profitability, not 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 client urge for food for horny, smooth e-bikes. Cake filed for bankruptcy at the beginning of the 12 months, and Onyx Motorbikes was on the verge of chapter when its 37-year-old proprietor died instantly, leaving an absolute mess in his wake. Cake and Onyx have been given recent possibilities of survival in 2025. 

Some startups have managed to discover a option to preserve an e-bike enterprise afloat. Simply take a look at Joco. The startup has fought the percentages and managed to show its docked e-bike rental service for supply staff into a profitable business and has even branched out into constructing battery-charging cupboards. 

Right here is one other micromobility must-read of 2024: