There is more areas to profit beyond the EV battery and powertrain production.
The electric vehicle (EV) boom isn’t just limited to manufacturing cars and its battery system. Malaysian business should look at the coming EV eco-system instead of trying to ‘pretend’ that they have the capability and financial ability to produce an electric vehicle.
Let the big car manufacturers build the vehicle. Let the big battery companies manufacture the battery system.
Malaysians need to look beyond the glamour of being a car manufacturer (which in time will need bailing out or a foreign partnership as we have seen time and time again)
Look at all the areas around the electric vehicle eco-system and pick the right segment and work at it. As EV’s come into Malaysia there is an urgent need to build an entire electric ecosystem and re-imagine what transportation looks like on all fronts.
Understand and see how Uber built its USD96-billion business by leveraging cars that were not their own.
Another good example of this trending eco-system is Canadian company Facedrive. This start-up fully expects to see its growth wave continue as it brings EVs to ridesharing, food delivery, and possibly the biggest disruptor yet, vehicle subscriptions. The innovative pioneer of carbon off-set ride-sharing has been acquiring companies and adding EV tie-in verticals at a rapid pace over the past year.
With these acquisitions, they have brought the EV boom into ride-sharing, food delivery and most stunningly, the emerging trend of car subscriptions. All this is partly why they have seen their share price jump over 45 percent over the last year.
Over the last twelve months, Facedrive’s revenue grew by a massive 552 percent. And now that Facedrive has announced a major government investment in their technology, it will grow even further. This is what is needed in Malaysia. Not another car brand or battery brand!
General Motors (GM) is one of the world’s largest manufacturers, and they are now branching out into manufacturing electric cars. Last month, June 2021, GM announced that it will boost EV investments to a high USD35 Billion up to 2025.
Though GM has been around for a long time, this new venture is an exciting step in their company’s history. They are working hard to create cars that are environmentally friendly and will offer drivers a better overall driving experience.
That’s not all its working on, either. In January this year, GM announced that it’s majority-owned subsidiary, Cruise and Microsoft were teaming up to commercialize autonomous vehicles without a driver.
Ford is another legacy automaker that has committed to the electric vehicle boom. And while it suffered a major downturn last year, Ford is already bouncing back, with its stock price more than doubling since May 2020. Ford also announced that it plans on spending over USD27 billion on electric vehicle production over the next decade.
In May this year, Ford unveiled its new F-150. An electric version of one of the hottest selling vehicle in the United States. The F-Series has been America’s best selling pickup truck for some 44 years and this new EV pickup truck will continue that impressive position at the top of its segment with its powerhouse that delivers a targeted 563 horsepower and 775 lb.-ft. of torque which is the most torque of any F-150 ever with an exhilarating drive, a high-tech frunk, and the ability to power your home if and when needed.
While Tesla’s still-to-be-released Cyber Truck boasts higher specs, the announcement of the iconic F-150 electric model has been very well received, and it has been reflected in Ford’s stock price.
