Humlikeabee
2022-11-22

Great ariticle, would you like to share it?

@HaroldAnderson：
Developing a new vehicle and bringing it to market is a very capital-intensive process. It requires a deep pool of capital to support and maintain long periods of heavy capital expenditure. This is the main reason why so many new automobile manufacturers fail and why the list ofdefunct US automobile manufacturersis so long. Hence, even with the ongoing ramp in EV adoption, EV companies will still face the same barriers to remaining a going concern. A risk flagged when Mullen's commercial EV peerElectric Last Milefiled for bankruptcy last month. So whilst Mullen is pre-revenue, an investment has to be assessed on the basis of the company's ability to sustain operations over what looks like to be an extended period of torrid capital market conditions.
Developing a new vehicle and bringing it to market is a very capital-intensive process. It requires a deep pool of capital to support and maintain long periods of heavy capital expenditure. This is the main reason why so many new automobile manufacturers fail and why the list ofdefunct US automobile manufacturersis so long. Hence, even with the ongoing ramp in EV adoption, EV companies will still face the same barriers to remaining a going concern. A risk flagged when Mullen's commercial EV peerElectric Last Milefiled for bankruptcy last month. So whilst Mullen is pre-revenue, an investment has to be assessed on the basis of the company's ability to sustain operations over what looks like to be an extended period of torrid capital market conditions.

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