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I think a lot of these startups would have been better served as trying to be specialist OEMs for the one or two things they really innovated on and not tried t
by steveBK123 4y ago
I think a lot of these startups would have been better served as trying to be specialist OEMs for the one or two things they really innovated on and not tried to make a whole car.
Imagine if they were selling the old school car makers their highly efficient motors being built out of a single factory with no support network or retail stores needed. Instead of trying to take on the behemoths in an extremely low margin business.
I think the EV startup and SPAC IPO craze is really the final blow out top of the ZIRP bubble.
Look at mobileye for example. Instead of trying to mine gold, sell shovels.
- panick21_ 4y agoThe problem with that is, they can't raise money on that and the OEMs take 5-10 years before adopting new tech. That is why they mostly buy from established people like Borg. Being a small tech company that gets bought up into on of the large suppliers like Borg is a possible path but not all that likely.
- steveBK123 4y agoI think in a traditional market, "hey we have this great tech we'd like to raise capital to operate as a B2B biz" would probably be fine. In the crazy tech/EV/ZIRP VC-funded bubble, especially the final SPAC-it-rubes IPO cash-out phase... everyone was incentivized to raise way too much money as long as they pretended they'd be able to target and user market of billions. Sort of mutually agreed delusion.