Don't Learn Too Many Names: Just 1% Of Chinese Startups Will Succeed

Industry News

The battle to build electric cars will be hard-fought.

Chinese Tesla-killer. That's a term you've probably heard us say a million times over the past couple of years. China is host to hundreds of startup companies that are all trying to be the next Tesla. Some of them have shown some promise, like Byton, a company that has raised over $500 million to build its handsome-looking SUV. Unfortunately, these companies are all facing stiff competition, and Bloomberg reports that only 1% will actually survive.

This stat comes from Chinese venture capital fund Nio Capital, which is partly backed by a Chinese electric car manufacturer NIO. Nio Captial managing partner Ian Zhu said: “It’s a very complicated system that needs abundant investments and a large group of people to be able to build a car from scratch. Therefore, the survival rate of all these EV startups will be very low.” Nio has its own impressive EVs including the 643-horsepower ES8 SUV and the bonkers 1,342-hp EP9 supercar, which was the fastest car to ever tackle the Hillclimb at Goodwood. Unfortunately, building mass-market production cars is not the same as building a handful of impressive demo cars.

You Might Also Like
8 Models Separated At Birth - Same Name, Different Cars
8 Models Separated At Birth - Same Name, Different Cars
6 Cars Mitsubishi Should Build To Become Cool Again
6 Cars Mitsubishi Should Build To Become Cool Again

Manufacturing continues to be the big issue for these startups. Building cars isn't easy, and even Tesla has struggled to do it in volume. Most of these companies in China have yet to produce EVs in large numbers and deliver them to customers. Reaching this goal will likely weed out the 99%.

Fake Lamborghini Murcielago SV Reverse-Engineered By Iran

The Chinese couldn’t have done it better.

Hennessey Trackhawk Is World's Quickest SUV

That's what a thousand horsepower will do for ya.

5 Things You Need To Know About The 2019 BMW X5

After driving the car for the first time, here are our key takeaways.

Watch The BMW M2 Competition Lap The Ring In 7:52

That was supercar territory not long ago.

Kim Jong-un Gets Classy With New Ride

So much for sanctions.

Drifting A 1,000-HP Corvette On Mountain Roads Takes Some Serious Skill

Thought drifting the entire Nurburgring was challenging? Try it in a 1,000-hp Corvette on a mountain road with no safety rails.

Hennessey Heritage Edition Ford Truck Makes More Power Than Anything You’ve Got

This crazy beast is even more powerful than the Ford GT.

Ford Imagines A Future With No Traffic Lights

Stopping at junctions could be a thing of the past in the future.

One-Off Ferrari 330GT Speciale Is A 50-Year-Old Dream Come True

This stunning coachbuilding project is a tribute to legendary Italian designer Giovanni Michelotti.

What's Hot

Related Cars

Starting MSRP
$49,000
Starting MSRP
$74,500
Starting MSRP
$79,500

Related Reviews

2017 Tesla Model X Review
Model Overview
0
2017 Tesla Model X Review
2019 Lamborghini Urus First Look Review: Has Lamborghini Built The Best SUV In The World?
First Look
15
2019 Lamborghini Urus First Look Review: Has Lamborghini Built The Best SUV In The World?
2018 Tesla Model S Review
Model Overview
0
2018 Tesla Model S Review
2018 Tesla Model 3 Review
Model Overview
0
2018 Tesla Model 3 Review
2018 Tesla Model 3 Test Drive Review: Are You Ready To Convert To Teslaism?
Test Drive
16
2018 Tesla Model 3 Test Drive Review: Are You Ready To Convert To Teslaism?