Fresh ideas – an EV that breaks the mold?

Electrified cars are approaching mainstream acceptance and adoption, be they a hybrid or a full fledged Electric Vehicle (EV).  There is widespread concern about the continued burning of fossil fuels, and electrification can resolve a lot of that if the electric power is generated without burning fossil fuels ( hydro-electric versus coal or diesel fired power plants ).  To date, most EV manufacturers have looked to the past in designing vehicles that replicate a look that was dictated by the need to accommodate internal combustion engines and their associated power trains. With an EV there is no traditional power train or engine to accommodate – it’s all different – so why not re-think vehicle design to take full advantage of this, and while we’re at it, why not re-think the way vehicles are accessed by the driving public?

An EV body needs only to sit atop the electric motor(s) and battery platform and can therefore be dramatically different than what we are used to. Given these different parameters, the vehicle interior space can be configured for more comfort, more practicality, and more capacity.  One new manufacturer has taken these ideas and many more to develop an EV that breaks the mold and takes us into a new world of possibilities.  The manufacturer is CANOO, based in Los Angeles, and you can explore these websites to see what we mean:

https://www.canoo.com/
https://vimeo.com/canoo

Another innovation of CANOO is that you will not be able to “purchase” the vehicle, you can access it only with a monthly subscription, and the subscription can be postponed, cancelled, or renewed, without a contract.  The subscription will include all maintenance and updates.  It seems that this way of accessing a vehicle will not always get you a “new” vehicle, but you will get one that is fully maintained and updated. In certain markets, Volvo also offers a subscription plan, and it includes car insurance. This could get complicated in jurisdictions where public, private, or a mix of insurance options are in play.  The subscription model is certainly innovative and convenient.  CANOO estimates up to 20% savings on their end by not having to support dealerships.  This contributes to affordability and may prove to be a compelling and disruptive way for the public to have access to modern, efficient vehicles. Ownership may become passé.

While CANOO is a privately held company at this point, we feel that there are ways to indirectly invest in this market, as many components can be sourced from large publicly held companies.  Battery components, electric motors, tires, and many other parts can be supplied by existing companies with good track records and good future potential for investors.

Disruptive technology and design takes time to create, develop, and blossom. CANOO expects to be fully in business within the next two years, starting in the Los Angeles and California market, and later expanding to eastern USA. Success in USA may lead to expansion elsewhere, and may inspire other companies to join in with these innovations.  The way we view “having an automobile” may be changed forever, benefitting our pocketbooks and our environment.

TREND DISRUPTORS is monitoring these developments, and will identify investment opportunities leading to success for the well informed investor.

Stay tuned!