Is that something we should be worried about? Not really. True, some investors will lose a lot of money. Sony may never get a single yen back from the money it spent on its prototype, and neither will Apple.
Many of the VC-backed startups will only remember a handful of classic car collectors at some point in the 2080s, while Mercedes may find that no one really wants to drive 600 miles without stopping for a coffee and a top-up. For the rest of us, however, massive overinvestment in the sector is good news. Here’s why.
First, consumers will have much more choice, and better yet, they will be effectively subsidized by venture capital firms and the automotive and technology industries.
We’re going to see a bewildering range of different types of battery-powered cars. Is range really that important to us as we normally only drive 10 or 20 miles a day? Is connectivity key to keeping us entertained on the go? Does design and prestige matter, as it did with gasoline vehicles, or is it just another functional gadget?
Do we really want to own an electric car or do we prefer to rent it for the few hours a week when we need it? The market will decide. The important point, however, is this. The market can make a much better decision when it has many options to choose from – and that is exactly what we are about to achieve.
Next, intense competition, combined with a lot of money, will accelerate the development of new technologies.
There is still a lot of innovation to come. Different types of batteries may still be developed and more and cheaper materials may be used. Tesla, for example, is changing the chemistry of its batteries to boost production, but there is still plenty of room for new thinking.
