Investopedia/Shoshanna Delventhal: Tesla Rival With Deep Pockets Taps GM, BMW Alums

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Tesla Rival With Deep Pockets Taps GM, BMW Alums
By Shoshanna Delventhal  April 23, 2018 — 2:33 PM EDT
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Aspiring Tesla Inc. (TSLA) competitor Evelozcity Vision is ramping up its executive team as it plans to launch its first electric car in 2021. The electric vehicle (EV) maker, which has raised $1 billion in capital commitments since December 2017, has added a General Motors Co. (GM) veteran to its growing team of seasoned industry experts. (See also: Is Tesla 'Too Big to Fail'? Morgan Stanley Says Yes.)

The Los Angeles-based automobile startup, founded by former executives of Chinese electric car startup Faraday Future, announced the addition of Karl-Thomas Neumann to its executive team and board of directors. Neumann most recently served as CEO of Opel, the former General Motors unit headquartered in Germany, before it was acquired by French car maker PSA.

The newly formed company attracted controversy when it was launched by Stefan Krause, the former chief financial officer of Faraday, who held earlier titles such as finance chief at BMW and Deutsche Bank, alongside Ulrich Kranz, another former BMW executive responsible for the luxury brand's i-series subbrand of plugin-hybrids and full EVs. The Chinese EV company accused the pair of stealing trade secrets, while Evelozcity denied any wrongdoing.
'We Need New Transportation Concepts'

The duo was joined by Richard Kim, who spent two years as chief of design at Faraday and designed the BMW i3 EV and the i8 hybrid sports car.

When Neumann left Opel, reports suggested that he could land a leadership role at big-name companies such as Volkswagen, where he was seen fit to return to head its luxury Audi unit after once serving as head of its China operations and e-mobility business.

"We need new transportation concepts and e-mobility to free cities of traffic and pollution,” stated Neumann in a press release this weekend. “I have looked at many options and believe that the traditional carmakers will not be driving the change. Evelozcity reflects my beliefs of what is required and that’s why I joined.”

The Wall Street Journal indicated that Neumann believes legacy car companies aren't fully committed to a wholesale transition for the industry out of knowledge that battery power will eat away at sales of high-margin fossil-fuel-powered cars. "It's very hard to disrupt yourselves," said the executive.

The news comes as Tesla faces issues ramping up the production of its first mass-market vehicle, the Model 3 sedan, while its CEO, Elon Musk, commits to 24/7 manufacturing in order to meet a newly raised production target. Evelozcity's Krause indicates that Tesla's success demonstrates the growing number of consumer who would rather not buy electrics from century-old automakers, reported the WSJ. "We think there is a younger generation that really wants to drive a true EV brand," he stated. (See also: Tesla Investors: Don’t Worry About the Model 3.)
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