The gold standard of electric vehicle brands, Tesla Motors spent more than a decade working to win the public over on the concept of EVs as a superior mode of automotive transportation. Yet, despite beating the odds and becoming the world`s most valuable automaker, Tesla-brand vehicles remain a relatively minuscule portion of the number of cars currently on the road. What`s more, several other automakers -- ranging from established Motor City behemoths to Silicon Valley startups -- are vying for a slice of the EV startups pie.
Will Tesla be toppled in the years ahead? Factors favoring the company`s continuing reign include the sizable headstart it had on the competition. Tesla also has tremendous brand recognition; when the average person thinks of an electric car, they probably imagine a Tesla.
Lastly, EV infrastructure and services tend to be designed with Tesla`s specifications in mind. The hundreds of Tesla fast charging stations currently getting built across the country are one example. These and other incentives make it likely that consumers will prefer Tesla over the competition for many years to come.
However, with so many motorists motivated by price when buying cars, the cost of a Tesla is a big hurdle to overcome. A more affordable but nevertheless elegantly designed EV appears to be the holy grail for competing automakers. The market space for such a car is where the following EV startups hope to make a household name for themselves:
Faraday & Future, Inc.
Founded in 2014, Faraday & Future has its sights set on developing an all-electric luxury SUV. Unfortunately, the company has yet to bring an EV to market. Despite seven years of setbacks, many investors continue to keep the faith, pointing to the engineering prowess among the company`s staff and the imminence of the finished product.
Fisker, Inc.
Affordable sustainability is the objective for this LA-based EV startup. Fisker plans to release a compact SUV -- named The Ocean -- sometime in 2022, with a price tag starting at $37,500. Unlike most EV companies, Fisker outsources manufacturing while focusing exclusively on software engineering and automotive design. Some see that business model as an asset, while others view it as a liability.
Li Auto
Based in Beijing, Li Auto is marketed as an EV manufacturer despite only making hybrid cars. However, the company insists there`s room for hybrids in the future, despite what most industry experts think. What`s more, the company`s market consists of individuals who live in places where EV charging stations are not as common as they are in California. Maybe there`s something to that line of thinking?
Lucid Motors Inc.
Founded in 2007, Lucid Motors has been in the EV industry almost as long as Tesla. The company receives financial backing through the Public Investment Fund of Saudi Arabia, which is notable considering the oil and gas sector represents 50 percent of the country`s gross domestic product. Focusing on luxury autos, Lucid Motors expects to start rolling vehicles out of their Arizona factory sometime in 2021.
Nikola Corp.
While the company name makes it seem like Nikola is unabashedly open about becoming Tesla`s top competition, the Phoenix-based EV automaker is primarily focused on commercial trucking, not personal vehicles. As one can imagine, the push for all-electric big rigs calls for a nationwide network of accessible charging stations, something that represents a large portion of Nikola`s capital investment requirements.
NIO, Inc.
Shanghai-based NIO is yet another EV startup focused on designing and producing fully-electric sports utility vehicles. Sidelining luxury in favor of functionality, the company`s flagship model has a starting price of $52,000, making it a comparatively affordable option for many aspiring EV owners.
These seven companies are certainly not the only electric vehicle startups with dreams of surpassing Tesla. What`s more, there are sure to be more around the corner. Will one of them make it happen? Time will tell, but we`re betting on Tesla going undefeated for the duration of the decade.