- Einride is a Swedish autonomous electric vehicle startup
- Einride is seeking $75 million in new financing.
- SPACs, a mechanism in which a publicly-traded shell company merges with a private business.
- Nikola (despite its dubious claims) helps to set the stage for the SPAC boom.
Swedish autonomous electric vehicle startup Einride is aiming to continue the momentum sparked by partnerships with Oatly and Lidl by seeking additional capital. Einride is seeking $75 million in new financing, while at the same time exploring the potential for a public listing through a special purpose acquisition company, according to people with knowledge of the company’s plans.
SPACs is a mechanism in which a publicly-traded shell company merges with a private business. It has taken the U.S. capital markets by storm led, in part, by startups focused on the electrification of mobility. Nikola (despite its dubious claims) helped set the stage for the SPAC boom. Canoo, Fisker Inc, ChargePoint, and Lordstown Motors have gone public via a SPAC in the past year.
Oatly began using Einride’s electric trucks.
Oatly began using Einride’s electric trucks on its delivery routes from each of its Swedish production sites in October 2020. Thus far, the trucks have driven over 8,600 km in electric mode. As a result has saved over 10,500 kg of CO2 compared to diesel, according to the companies.
“Sustainability is at the core of everything we do, and we work hard to lower our emissions across the board. This includes our emissions for transports, which is why we are now shifting to electrical vehicles. This reduces our climate footprint by 87% on these routes.
The deal with Oatly was just the beginning. As the ink dried on that partnership, Einride quickly signed other marquee Swedish businesses including the food shipping and logistics company Lidl and the electronics manufacturer Electrolux.
Venture investors are falling all over each other to invest in several companies.
The benefits that would accrue to the industry are more than just financial. Trucking is a huge component of the greenhouse gas emissions that come from the transportation sector which includes road, rail, air, and marine transportation. In 2016, trucking and transport broadly contributed to roughly 24% of the world’s total greenhouse gas emissions — and that number has been steadily increasing.
That’s just scratching the surface of the money that’s pouring into autonomous, electrified transport. Tesla is in the game with its semi-truck and, in China, Plus AI is automating several vehicles from Manbang, Sunin,g and, FAW Jiefang.
All of this money is aiming to capture a portion of the market for autonomous, electrified vehicles that the consulting firm McKinsey estimated would save the trucking industry over $100 billion. It’s a potentially huge opportunity in the $260 billion U.S. trucking market alone. Worldwide, businesses spend about $1.2 trillion on trucking, according to McKinsey.