When EV startups shut down, will their cars still work?

The bankruptcy of electric vehicle (EV) startups raises concerns about the functionality of their cars post-closure. A case in point is WM Motor, a Chinese EV manufacturer that filed for bankruptcy in October 2023. Owners, like Richard Qian, found their vehicles rendered inoperable in terms of app-based features, such as remote locking and monitoring of charging status. This situation highlights a broader issue affecting not only Chinese startups but also established brands entering new markets, where a lack of dealer networks and spare parts could lead to similar problems. The reliance on cloud services for vehicle functionality means that if a company goes under, owners may lose access to essential features, making the purchase of such vehicles risky. Many consumers express a preference for established brands to avoid these potential pitfalls, as newer EVs often integrate critical functions into software that may become inaccessible if the manufacturer ceases operations. The article suggests that until EV startups demonstrate long-term viability and reliability, consumers may be hesitant to invest in them, favoring traditional automakers instead.

- Bankruptcy of EV startups can lead to loss of vehicle functionality.

- Owners may lose access to essential app-based features if the manufacturer shuts down.

- Established brands are preferred by consumers to mitigate risks associated with startups.

- The reliance on cloud services for vehicle operations poses significant risks.

- Consumers are cautious about investing in new EV startups without proven track records.