Electric vehicles hold promise as the future of transportation, but they're not yet ready to replace gas-powered vehicles. As they're expensive to build, we're not ready to have an EV in every driveway, despite the plans by some automakers to completely phase out their fossil fuel-powered cars over the next decade or so.
EV start-up Arrival (NASDAQ: ARVL) promised to be a different kind of electric car company. It said its vehicles would be affordable because its manufacturing model would be decentralized, using existing warehouses and factories to house less capital-intensive "microfactories." By bringing production closer to customers, it would help accelerate the mass adoption of EVs globally.
Reality, though, is a potent tonic, and already Arrival is pushing back its timeline for when a vehicle might roll off its assembly lines. Shares of the EV start-up have lost three-quarters of their value since it went public via a merger with a special purpose acquisition company (SPAC) in March, so let's see if it's worth taking a chance on Arrival and betting its blueprint for low-cost EVs is workable.
Source Fool.com