The “Pretender” auto companies will likely fail because they don’t have Elon Musk. While we have been critical of Tesla’s corporate governance, there is no denying Elon Musk’s persistence. Musk’s level of persistence is rare. It is highly unlikely that the Pretenders (NKLA, NIO, RIDE, WKHS) have an Elon Musk among their senior ranks.
The EV Auto bubble is reminiscent of the Solar Tech bubble of a few years ago. A large TAM is hardly enough to make a company successful. Early-stage companies require leaders with exceptionally strong wills, leaders that exhibit “grit” or that may be described as exceptionally persistent. Elon Musk has persistence in spades. Government subsidies and nosebleed valuation aside, were it not for Musk Tesla likely would not be a going concern today. The company likely would not have had a prayer of delivering it’s initial roadster EV much less its current product line.
- Learn about NKLA CEO Mark Russell HERE
- Learn about NIO founder and CEO Bin Li HERE
- Learn about RIDE founder and CEO Steve Burns HERE
- Learn about WKHS CEO Duane Hughes HERE
- Learn about TSLA CEO Elon Musk HERE
See “A Bubble in Pictures” HERE
Of the four previously mentioned companies, Shanghai-based NIO likely has the best chance of achieving long-term market success given the massive support China’s government may provide.
However, there is nothing about the CEOs of NKLA, RIDE nor WKHS that screams “we will prevail!”