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TechCrunch Mobility: Bankruptcy takes out two
The year in transportation sees bankruptcies with Rad Power Bikes and Luminar filing for Chapter 11. Rad seeks funding while Luminar, facing management turmoil and a failed deal with Volvo, aims to sell its business soon. Despite these setbacks, the robotaxi industry is thriving, led by companies like Waymo, while automakers pivot towards hybrids and explore affordable EV options for 2027.
Key points
- Rad Power Bikes files for Chapter 11 bankruptcy after warning of potential shutdown without new funding; they aim to sell the business within 45-60 days.
- Luminar, a lidar maker, also files for bankruptcy; the filing follows layoffs, executive departures, and legal issues with customer Volvo; Luminar plans to sell off its operations.
- Robotaxi industry showing growth, driven by companies like Waymo and predictions of market competition in 2026.
- Ford pivots strategy by ending production of fully electric F-150 Lightning, focusing more on hybrid and gas-powered vehicles; introduces extended-range electric truck model.
- New affordable EVs are anticipated with the upcoming launches of Rivian's R2 and Slate Auto's electric truck.
Why it matters
- The bankruptcies reflect ongoing challenges within the EV and transportation sectors, echoing previous struggles seen in 2023 with companies like Canoo and Nikola.
- There is historical context regarding the volatility in the transportation industry, particularly as companies shift from traditional automotive models to electric and autonomous vehicles.
- The rise of robotaxis and autonomous technology aligns with broader trends in transportation innovation and smart city initiatives anticipated through 2025.
The bankruptcies of Rad Power Bikes and Luminar signal turbulent times for the transportation sector; however, the industry's growth in robotaxis and continued EV development suggests a transformative future despite current challenges.