EV startups need to prove they were worth the risk — and actually manufacturing vehicles is probably a good starting point: The green transition that has gathered steam over the past few years, with the global consensus being that the future of on-land transport will be EVs, leading to investors piling in on the industry early on. With all this interest, wannabe EV manufacturers found themselves being the most popular bunch in the party — without ever having manufactured an actual car or making any revenue, writes the Financial Times. At least 18 automakers have listed in the past two years via SPAC while startup Rivian has successfully completed a USD 11.9 bn IPO, with these companies soaring above oldschool carmakers in valuation. However, the next 12 months are crucial to prove that EV makers were worth the heaping investments poured into them.

Investors are looking for the next Tesla, but don’t want the years of headache that came with it: While Tesla has proved that EV manufacturing can be a lucrative business, it took Elon Musk a decade to get it right. Investors are hoping that these new EV makers could emulate Tesla’s success, but they’re not willing to wait that long for results. The impatience also means that the euphoria is already beginning to wane, as mass production of EVs is not as easy as previously thought, particularly in light of the commodities and supply chain rises, which pushed EV makers to push up prices on vehicles that haven’t been introduced yet while slashing production targets for the year.

Partnerships — and even more investments — may be key to survival: Many EV startups thought the plan of action would entail building their own factory — a target they now can’t seem to complete without needing even more money. Faced with rising costs and pressure from investors, wannabe EV makers are seeking help from the old school auto giants, mainly through partnerships. Nonetheless, with others deciding to take on the journey solo, investors are crossing their fingers and hoping they chose correctly.