Hyperdrive
Carmakers Risk Wasting Billions on Electric, Autonomous Vehicles
- $255 billion earmarked for battery cars when many lose money
- Consultants warn self-driving technology isn’t economical yet
This article is for subscribers only.
Automakers are in a pickle. If they don’t invest in electric cars and self-driving technology, investors shun them. If they do, they risk burning billions of dollars on cars that won’t make money, according to a new study from consulting firm AlixPartners.
The auto industry and technology players looking to get into transportation are spending $255 billion on 200-plus electric models, many of which will be unprofitable, and $61 billion toward autonomous vehicles that consumers aren’t prepared to buy, the consultants said in the study, released Wednesday. It predicts a “a pile-up of epic proportions.”