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In the transportation industry, the phrase that epitomised 2024 was “business whiplash.” Established automakers revised their all-electric vehicle (EV) initiatives, startups adapted to new realities, and certain Silicon Valley investors and leaders shifted their perspectives in response to an evolving political environment where they now take more prominent roles.
Jaguar made headlines with a bold rebranding initiative that sparked considerable discussion on social media, at least for a few days. General Motors (GM) moderated its EV ambitions, pivoting on software development due to internal challenges hastened by issues with the Chevy Blazer EV, which exhibited some positive developments. Notably, the automaker opted to halt funding for its Cruise robotaxi initiative.
Throughout the industry, founders, venture capitalists, and automotive executives adjusted their strategies to accommodate evolving consumer preferences and, in many instances, to remain afloat.
Below are the key issues and developments in the transportation sector for 2024.
Highlights
Autonomous Vehicles: Transformations, Survivors, and Expansion
The excitement surrounding autonomous vehicle (AV) technology from 2016 to 2020 has faded, leading us into a phase of disillusionment. A few remaining AV startups, like Ghost Autonomy and Phantom Auto, which had already shifted focus, faced closure in 2024. Others in the sector turned to dual-use approaches, integrating defence applications into their offerings, while companies like TuSimple shifted their focus to *checks notes* AI animation and gaming instead of pursuing autonomous driving technology.
The journey toward a sustainable robotaxi business remains challenging. GM announced the cessation of funding for the Cruise robotaxi programme; the resources will now be allocated to enhance its hands-free advanced driver-assistance system, eventually leading to the introduction of personal autonomous vehicles.
AVs benefitted from the flourishing AI sector and renewed interest in comprehensive autonomy models (as seen with Wayve). Well-financed AV firms including Waymo and Zoox continue to pursue the robotaxi model. Tesla introduced its Cybercab prototype this year, announcing plans for production in 2025 or 2026. CEO Elon Musk has also assured the rollout of “unsupervised FSD” and the initiation of a robotaxi service in California and Texas next year, though these claims are viewed with cautious skepticism, given Musk’s historical challenges with meeting timelines.
Noteworthy AV Developments of 2024:
- Apple discontinues its autonomous electric vehicle initiative and begins workforce layoffs
- Cruise personnel left ‘blindsided’ by GM’s decision to terminate the robotaxi programme
- Investors express discontent as TuSimple shifts focus from self-driving trucks to AI gaming
- Motional reportedly reduced its workforce by around 550 employees, approximately 40%, in a recent restructuring
- Tesla showcased 20 Cybercabs at the We, Robot event, confirming availability for under £30,000
Electric Vehicles Face Scrutiny
Traditional automakers such as Ford and GM invested heavily in expanding their electric vehicle ranges and developing U.S. battery manufacturing facilities to optimise supply chains. With support from the Biden administration’s EV tax incentives, EV sales achieved record levels this year. However, manufacturers and investors expressed concerns that electric car sales, which constituted 8.9% of overall vehicle sales in the third quarter, have not met anticipated growth expectations. Tesla reported a drop in profits at the beginning of the year, with Musk acknowledging that competitors were retreating from EV initiatives due to the growing popularity of hybrids. This trend may continue into 2025 with the incoming administration’s proposal to reduce the EV tax incentives.
Meanwhile, EV startups have struggled with the SPAC model, which has proven ineffective for fostering sustainable business growth. The tumultuous saga of Fisker, which succumbed to internal strife, exemplified this difficulty — the startup left its headquarters in disarray and had to negotiate with American Lease, which acquired Fisker’s fleet, to assist vehicle owners with necessary recall repairs.
Canoo has faced ongoing financial difficulties, leading to employee furloughs initiated in December. It appears that excessive spending, such as CEO Tony Aquila’s lavish private jet expenses exceeding Canoo’s annual revenue, and acquiring assets from the bankrupt company Arrival contributed to these troubles.
Despite raising over £1 billion following its merger with a SPAC in 2021, Faraday Future is also on a rapid decline, marked by data analytics firm Palantir now owning an 8.7% stake in the company due to unpaid service fees.
Among the new EV contenders, Rivian stood out by not pursuing a public listing via a special purpose acquisition merger. Although Rivian has encountered challenges since its historic IPO, it marked significant achievements in 2024, despite facing hurdles, including several lawsuits alleging harassment against senior executives.
In March, Rivian presented its next-generation R2 SUV alongside an unexpected R3 hatchback. By summer, the company’s viability was tied to successfully selling its updated R1T pickup and R1S SUV profitably, ensuring its endurance until the R2 SUV could hit the market.
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Tesla successfully secured a $6.6 billion loan to resume operations at its Georgia facility. This deal was reportedly facilitated by a covert agreement with the United Auto Workers union.
During a tumultuous period, Tesla’s CEO, Elon Musk, was determined to retain his hefty $56 billion compensation package, relying on investor commitment. The company conducted extensive layoffs this year, eliminated its entire Supercharger team, scrapped plans for a $25,000 electric vehicle, managed seven Cybertruck recalls, and introduced its robotaxi prototype.
Key electric vehicle articles of 2024:
- I spent my first week with an electric vehicle, the Chevy Equinox — here’s my experience
- Hertz plans to divest 20,000 electric vehicles, replacing them with petrol cars
- The 2025 Lucid Air Pure offers luxury at $69,900, with opportunities for technology upgrades
eVTOLs continue to attract investment
This year marked a significant phase for the electric vertical takeoff and landing (eVTOL) vehicle sector, with frequent announcements from major industry players. Joby Aviation and Archer Aviation revealed plans for commercial electric air taxi services set to launch in 2025.
Both firms have also made considerable strides in fundraising to secure the necessary capital for Federal Aviation Administration certification and launch operations. Joby, for instance, initially received a $500 million investment from Toyota, followed by raising $222 million before kicking off a $300 million public offering. Archer raised $430 million recently and partnered with Anduril to explore defence opportunities—a trend likely to persist into 2025 as interest in defence technology escalates. Furthermore, Beta Technologies successfully secured $318 million in Series C funding.
Numerous collaborations between eVTOL startups and conventional airline companies have emerged, such as Beta’s recent partnership with Air New Zealand, alongside the establishment of vertiports in important urban locations across the U.S., Europe, and Asia.
However, not all startups have fared well, with some exhausting their funds and struggling to obtain further investment. The German eVTOL startup Lilium declared bankruptcy after failing to raise sufficient capital. In December, the company ceased operations and laid off 1,000 employees, yet seems to have received a last-minute investment to keep it afloat. Stay informed.
Next year, 2025, will be crucial to observe whether the remaining companies can achieve proper FAA approval and successfully create a viable business using eVTOL technology.
Other must-read articles on eVTOLs for 2024:
- Federal authorities pave the way for eVTOL startups to introduce flying vehicles to the US airspace
- Beta Technologies reveals its first electric aircraft designed for passenger transport
Micromobility moves cautiously forward
The excitement surrounding shared micromobility has subsided. This year has witnessed the final stages of consolidation, strategic pivots, and a few prevailing entities.
Tier and Dott have finalised their merger, while Lime has maintained its consistent path towards sustainability and market leadership, albeit not consistently profitable.
The bankruptcy of VanMoof in 2023 underscored the challenges of scaling a novel e-bike venture, despite a consumer demand for stylish e-bikes. Cake filed for bankruptcy at the start of the year, and Onyx Motorbikes faced bankruptcy when its 37-year-old owner unexpectedly passed away, creating significant complications. Nevertheless, both Cake and Onyx have received new opportunities for survival in 2025.
On a more positive note, some startups have successfully navigated the e-bike market. For example, Joco has thrived, transforming its docked e-bike rental service for delivery personnel into a profitable enterprise and expanding into battery-charging infrastructure.
Another essential micromobility update of 2024:
- Bloom is revolutionising e-bike manufacturing in the US