EV disruptors hit industry speed bumps that have plagued legacy automakers for years

DETROIT : Electric vehicle startups that promised to disrupt the automotive industry by using a software- and technology-heavy approach are now scrambling to cut costs amid the type of industry slowdown that has bedeviled Detroit automakers over the years.

"Like every company that is burning money, you need to make the right adjustments so that you can get to the other side of the desert," said Evangelos Simoudis, a Silicon Valley venture capital investor and industry adviser. Arrival said its $500 million in cash on hand would last until late 2023 with the proposed cuts. The question is whether that will be enough.

Rivian not only has a large deal to supply vans to Amazon.com Inc, but the online giant also is a major investor. "This is an incredibly tough business," said Barry Engle, a former auto executive who started a special-purpose acquisition company that merged with air taxi startup Lilium."With the success of Tesla, it's easy to forget that was a story that was 20 years in the making and along the way there were many points where they stared death in the face."

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