{"id":26326,"date":"2020-11-12T13:00:23","date_gmt":"2020-11-12T17:00:23","guid":{"rendered":"http:\/\/henrypayne.com\/?p=26326"},"modified":"2020-11-13T13:08:56","modified_gmt":"2020-11-13T17:08:56","slug":"heres-how-auto-startups-are-getting-the-cash-to-challenge-big-three-carmakers","status":"publish","type":"post","link":"https:\/\/henrypayne.com\/index.php\/2020\/11\/heres-how-auto-startups-are-getting-the-cash-to-challenge-big-three-carmakers","title":{"rendered":"Here’s how auto startups are getting the cash to challenge Big Three carmakers"},"content":{"rendered":"

Not since the early 20th century have there been so many startups in the U.S. auto industry.<\/p>\n

Add Phoenix-based Atlis Motor Vehicles to a growing list of electric-vehicle startups across the United States \u2014\u00a0Rivian Automotive, Nikola Corp., Lordstown Motors Corp. and Bollinger Motors among them \u2014\u00a0seeking to make their marks. The surge in 21st-century startups is inspired by the meteoric success of Silicon Valley EV-maker Tesla Inc. as well as\u00a0government regulations that for the first time mandate the powertrains automakers must use.<\/p>\n

\"Upstart<\/p>\n
<\/div>\n<\/figure>\n

But where automakers a century ago were pioneers on the Industrial Revolution\u2019s transportation frontier, today\u2019s startups face formidable challenges from established\u00a0Detroit-based and foreign automakers jockeying for the same space in a still-undefined\u00a0consumer market. The competition is stiff and well-financed.<\/p>\n

General Motors Co.’s Cadillac is going electric and its GMC unit has a new Hummer EV. Ford Motor Co. and Fiat Chrysler Automobiles’ Ram have electric pickups in the works. German rivals including Volkswagen and BMW intensify the competition.<\/p>\n

Those legacy makers hold a big advantage in access to capital to build factories, manage distribution\u00a0and establish dealer networks. But startups benefit from efficiencies created by in 21st century, including online marketing and low-maintenance electric powertrains.<\/p>\n

Founded by Mark Hanchett, the Atlis XT pickup is aimed at the commercial vehicle market instead of the luxury niche\u00a0targeted by Rivian and\u00a0Hummer.\u00a0Atlis promises a pickup starting at $45,000 with a flexible electric platform that fleet customers can configure to their own specifications.<\/p>\n

“Organizations like Atlis are really looking at a much bigger picture,”\u00a0Hanchett said in an interview. \u201cIt\u2019s perfect for fleet owners.\u00a0Electric technology is superior to the diesel technology that’s out there today.\u201d<\/p>\n

Hanchett breaks through the noise with a bold claim: that his trucks can recharge up to 500 miles on the Atlis high-speed charging network in just 15 minutes \u2014\u00a0competitive with the diesel trucks that dominate today\u2019s market.<\/p>\n

\u2014\u00a0competitive with the diesel trucks that dominate today\u2019s market.<\/p>\n

\"With<\/p>\n
<\/div>\n<\/figure>\n

The variety of planned EVs\u00a0is broad, reminiscent of the early 1900s. The Industrial Revolution\u2019s innovation of\u00a0gas and steam engines were the perfect spark for the horseless carriage. The Duryea Motor Coach Co.\u00a0launched the auto revolution in 1896 with the first gas-powered motorcar.<\/p>\n

The first decade of the 20th century saw anywhere from 500 to 1,500\u00a0startup automakers (depending on the source) in the U.S. They ranged from names that would become familiar like\u00a0Oldsmobile and Cadillac, to forgotten shops like Pope Hartford and the Thomas B. Jeffery Co. But when\u00a0Ford Motor Co.\u00a0broke through with mass manufacturing in 1913, boutique automakers found themselves in trouble.<\/p>\n