Burning cash, commercial EV startups rush to deliver vehicles

However, others have already struggled.

ELMS filed for bankruptcy liquidation in June, citing insufficient funding, while Lordstown had to sell assets to Taiwanese contract manufacturer Foxconn.

In May, Canoo revealed “substantial doubt” about its ability to continue as an ongoing concern, but it recently received a boost when Walmart ordered 4,500 vehicles.

Getting more cash can be tough.

“The market just isn’t an ideal market to raise capital for,” said Dakota Semler, CEO of Los Angeles-based Exos, which already has 200 electric trucks rolling out on U.S. roads for customers, including Amazon delivery contractors.

Xos had $132.7 million in cash at the end of March and could raise another $125 million through a share purchase deal with a unit of US investment firm Yorkville Advisors.

Legacy automakers are turning up the heat.

FedEx has 150 electric trucks from GM’s Brightdrop brand running deliveries around Los Angeles. “Looks like you’re in the future now,” FedEx driver Nelson Granados, 28, told a Reuters reporter as he delivered during a ride in the Brightdrop EV.

FedEx has ordered 2,500 BrightDrop trucks, inspired by a combination of the 18-month-old company’s technology and GM’s manufacturing muscle, FedEx’s chief sustainability officer, Mitch Jackson, told Reuters

Potential new entrants have taken note.

British EV startup Bedio makes electric powertrains for vans for Stelantis and said earlier this year it was talking to investors about building its own van.

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