The Great Inflection: Transfiguring Transportation in a High-Tech Age
Deeptech Nation: Insights from the Frontiers of What’s Possible
In this edition, we will focus on the transportation industry, the EV revolution and some of the rising stars in Europe 🇪🇺
As the digital revolution unrelentingly reconfigures our world, one of the most profound transformations is occurring in the realm of transportation. By 2024, the very notion of public transportation is set to undergo a radical metamorphosis, turning it into a veritable tech behemoth. From the implementation of mobile ticketing to the application of big data to optimise vehicle dispatches, routes, and schedules, we're on track to a future where public transport systems function more like finely tuned algorithms than traditional transit services.
Underpinning this transformation is a commitment to smarter traffic regulation, ensuring both the safety and efficiency of vehicle movement and rendering public transportation a more attractive alternative to cars. But what, you ask, will be the key vectors of this tech-driven revolution in public transit?
Smarter traffic infrastructure: From smart traffic lights to better bus lane management and optimised bus stop distribution, intelligent infrastructure will be a game changer.
Account-based ticketing: The ubiquity of smartphones will enable an embrace of mobile ticketing options, ushering in an era of contactless public transit.
Multimodal solutions: The integration of bikes, scooters, ride-share, taxis, and parking into the public transit system promises to solve the vexing first mile/last mile conundrum1.
Ascendant Trends
The electric vehicle (EV) market is in the throes of a renaissance, spurred on by remarkable advancements in battery technology. Come 2023, we'll see new EV models boasting driving ranges of over 300 miles, with a select few even breaking the 400-mile barrier. Despite the increasing ubiquity and affordability of EVs, adoption rates continue to exhibit stark global disparities. While China, France, Germany, and the US are blazing the trail, other countries are yet to catch up2.
In an interesting twist, hydrogen fuel cell vehicles, once hailed as the next big thing in clean transportation, seem to be falling out of favour. The automotive industry's laser focus on battery electric vehicles (BEVs), coupled with recent strides in battery technology, is relegating fuel cells to the status of a technological sideshow2.
Top Risers 🔝
Zeeker: An electric vehicle manufacturing startup, raised $750 million in Series A funding. This is a significant investment highlighting the ongoing growth and demand in the EV industry, particularly in the manufacturing sector1.
Planet42: A rent-to-buy subscription startup, raised a combined total of $100 million to expand in Africa and Latin America. This indicates a growing interest in subscription-based models for acquiring vehicles, and a specific focus on emerging markets1.
ONE: A battery tech startup, raised $300 million in Series B funding. Investments in battery technology are crucial for the development of electric vehicles and renewable energy storage systems, signifying the importance of this sector1.
Skydio Inc: An autonomous drone startup, raised $230 million in Series E funding. This underscores the intersection of EV technology and drone technology, hinting at the potential for increased automation and remote operation in the mobility industry1.
Astranis: A space startup that builds small and low-cost telecommunications satellites, raised $200 million in a venture round. While not directly related to EVs, this investment indicates a broader interest in mobility and communications technology, including the infrastructure that supports these systems2
EV Landscape: China's Charge and Tesla's Tenacity
China's home-grown EV company, BYD, has made a rapid ascent, grabbing a 21.3% global market share1. Meanwhile, Tesla, the established industry titan, is holding steady, ranked second globally with a 16.5% market share1.
China's Electric Growth
BYD, a company backed by Warren Buffett, has emerged as a formidable force in the EV space. In the first quarter of 2023, BYD sold 552,076 vehicles, marking a whopping 90% increase from Q1 20221. Its domination extends to the Chinese market, where it has overtaken Volkswagen as the best-selling car brand1.
A part of BYD's success can be traced to its aggressive pricing strategy. The company recently launched the "BYD Seagull", an EV starting at a modest $11,400 USD, aimed at mass-market consumers1. Alongside this, BYD's latest Song L concept SUV has been unveiled as a direct competitor to Tesla's Model Y1.
Tesla's Strategy
Tesla is responding to this shifting landscape with a few strategic moves. The company has cut U.S. prices for the sixth time this year ahead of Q1 results, effectively making their cars more affordable and eligible for $7,500 federal tax credits12.
Tesla's delivery records tell a story of resilience. The company reported a record 466,140 sedans and crossovers delivered in Q2, surpassing analysts' expectations2. The price cuts implemented early in 2023 have paid significant dividends, contributing to strong demand and production efficiencies2.
The Future of EVs
The EV market is evolving rapidly, with a sharp focus on sustainability. The proposed limits in the U.S. indicate a potential for 67% of all new vehicles sold to be all-electric by 2032, surpassing President Joe Biden’s previous commitment1. Moreover, the International Energy Agency (IEA) predicts that nearly one in five cars sold globally this year will be electric1.
Innovation is also a key part of this narrative. CATL, a major supplier of EV batteries, has launched a "condensed battery" with an energy density of up to 500 Wh/kg for aircraft and has plans for an automotive version this year1.
As the EV market matures, we're likely to see a shift in market dynamics. While Tesla continues to dominate in the U.S., Chinese manufacturers are becoming increasingly prominent players in the global arena. Both BYD and Tesla are exploring new strategies and technologies to maintain their competitive edge in this fast-paced market. It is clear that the race to EV supremacy is far from over, and the journey to a cleaner future is just beginning.
Stay tuned to 'Deeptech Nation' as we continue to explore the frontiers of AI, deeptech, and beyond. We'll keep you updated on the innovations shaping our future.
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