electric car plugged in

EV Companies Set High Revenue Growth Goals

Three EV Makers Forecast $10 Billion in Revenue in Three Years

Electric vehicle startups are setting aggressive revenue growth targets. Faraday Future, Arrival Group, and Fisker (FSR) have all announced plans to top $10 billion in revenue within three years of beginning sales and production.

For context, Google (GOOGL) reached $10 billion in sales over the course of eight years, which is the fastest a US startup has ever reached this milestone. Uber’s (UBER) sales hit this mark within nine years of its first sales, and Tesla (TSLA) took 11 years to hit $10 billion in revenue. Investors have conflicting views about whether or not these EV companies’ revenue goals are realistic.

EV Bears’ Opinions

Some analysts say these targets are overly optimistic because the EV sector is getting too crowded and the success of EVs is too dependent on government policies, which are subject to change.

Other bears note that EVs currently make up only 2% of the automotive market in the US, and it may prove difficult to convince swaths of new customers to spend money on electric vehicles. More charging stations and other infrastructure is convincing some new consumers to buy EVs, but other people may be reluctant because of their price tag and because of concerns about charging.

EV Bulls’ Opinions

In contrast, EV backers believe that shifting consumer sentiment as well as more stringent government regulations will pave the way for an EV boom. EV bulls also say that because cars have such a high price tag, it takes a relatively small amount of sales to push revenue into the billions.

EV optimists are also eying Tesla (TSLA) which has reached a market capitalization of $665 billion. Though Tesla’s share price has dipped in the past several months, it climbed more than eightfold in 2020. EV optimists believe that other startups in the sphere could also see this type of growth.

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