The developments that influenced electric flying, robotaxis, and EVs in 2024

The defining theme of 2024 in the transportation sector could be best summarized as “business whiplash.” Legacy automakers shifted their strategies away from an all-EVs-or-bust mindset, startups pivoted, and some prominent Silicon Valley VCs and executives adjusted their outlooks amid a shifting political landscape, now playing central roles.

Jaguar took a bold, polarizing step with a rebranding effort that garnered significant attention, dominating social media for a few days. GM, meanwhile, slowed its EV ambitions and had to change course on software development, particularly due to issues with the Chevy Blazer EV. This led to internal restructuring and a significant shift in its approach, including halting funding for Cruise, its robotaxi program. Across the board, automotive founders, VCs, and execs realigned to adapt to evolving consumer demands and, in many cases, simply to survive.

Here are some of the major stories shaping the transportation landscape in 2024:

Autonomous Vehicles: Pivots, Survivors, and Scaling

The once-buzzy autonomous vehicle (AV) industry, from 2016 to 2020, has passed its peak hype cycle and moved into a phase of disillusionment. Several remaining AV startups, including Ghost Autonomy and Phantom Auto, either shut down or pivoted to become dual-use companies focusing on defense. Others, like TuSimple, shifted away from AVs entirely, instead embracing AI animation and gaming. The commercial robotaxi dream, though still pursued by Waymo and Zoox, remains fraught with challenges, especially following GM’s decision to abandon Cruise’s robotaxi development. Tesla, however, remains a notable exception, unveiling its Cybercab prototype and promising an unsupervised Full Self-Driving (FSD) service in California and Texas by 2025, though skepticism remains given Musk’s history of missed deadlines.

EVs Under Pressure

In 2024, legacy automakers like Ford and GM continued to invest billions into their EV strategies and U.S.-based battery manufacturing, supported by tax credits from the Biden administration. However, the hoped-for surge in EV sales hasn’t materialized as quickly as anticipated, with sales reaching just 8.9% of total auto sales in Q3. Tesla saw its profits drop early in the year, driven by automakers shifting back toward hybrids in response to slowing EV demand. Meanwhile, the SPAC model for EV startups has proven largely ineffective, as Fisker, Canoo, and Faraday Future have faced serious challenges, from financial mismanagement to leadership struggles.

One bright spot was Rivian, which, despite not having the smoothest post-IPO journey, achieved some key milestones in 2024. Rivian introduced its next-generation R2 SUV and a surprise R3 hatchback, securing a $6.6 billion loan to restart production at its Georgia plant, supported by a deal with the United Auto Workers. However, the company continues to face lawsuits over executive misconduct.

Tesla, under Musk’s leadership, grappled with internal struggles, including mass layoffs, the elimination of its Supercharger team, the abandonment of its $25,000 EV project, and multiple Cybertruck recalls. The company also unveiled its robotaxi prototype, hinting at plans for autonomous vehicles.

eVTOLs Gain Momentum

2024 marked a year of ambitious plans and big fundraises for electric vertical takeoff and landing (eVTOL) startups. Joby Aviation and Archer Aviation pushed forward with commercial air taxi plans for 2025, raising significant funding to achieve FAA certification. Joby secured $500 million from Toyota and raised an additional $222 million, followed by a $300 million public offering. Archer raised $430 million and partnered with Anduril to venture into defense. Beta Technologies also raised $318 million in a Series C round, further fueling eVTOL development.

However, not all eVTOL startups thrived. German company Lilium filed for bankruptcy after failing to secure sufficient funding, shutting down and laying off 1,000 workers. The industry will face crucial FAA approval challenges in 2025, as investors await the first commercial air taxi launches.

Micromobility Continues to Struggle

The shared micromobility boom has largely fizzled out, with companies consolidating or shutting down. Tier and Dott merged, while Lime managed to maintain a position of market dominance. However, VanMoof filed for bankruptcy in 2023, revealing the challenges of scaling e-bike businesses, and Cake and Onyx Motorbikes faced severe financial difficulties. Despite this, Joco emerged as a rare success story, transforming its docked e-bike rental service for delivery workers into a profitable venture, even expanding into battery-charging cabinets.

In 2025, the transportation industry will continue grappling with shifting strategies, lingering challenges, and new opportunities.