The transportation sector witnessed a year of whiplash in 2024, with legacy automakers, startups, and investors making significant adjustments to their strategies in response to shifting consumer demand and regulatory landscapes. The year was marked by pivots, survivors, and scale in autonomous vehicles, electric vehicles, and electric vertical takeoff and landing vehicles.

In the autonomous vehicle (AV) space, the hype cycle has brought us through the trough of disillusionment. A handful of remaining AV startups, including Ghost Autonomy and Phantom Auto, took their final breaths in 2024. Other AV startups turned to defense, while others, like TuSimple, pivoted almost entirely away from developing autonomous technology and instead focused on AI animation and gaming. The path to a commercial robotaxi business remains fraught, with General Motors deciding to no longer fund the Cruise robotaxi development program. However, Waymo and Zoox, two well-funded AV companies, are still on the commercial robotaxi path, and Tesla revealed its Cybercab prototype with plans to start production in 2025 or 2026.

In the electric vehicle (EV) space, legacy automakers like Ford and General Motors spent billions of dollars beefing up their EV lineups and investing in U.S. battery manufacturing facilities to keep on top of supply chains. EV sales continued to reach record highs this year, bolstered by the Biden administration's EV tax credit. However, automakers and investors have feared that sales for electric cars haven't risen at the pace they hoped for. Tesla even saw its own profits drop at the start of the year, with Elon Musk noting that automakers were pulling back from EVs due to pressure from hybrids.

Meanwhile, in EV startup land, the SPAC model has continued to prove unsuccessful for driving long-term business growth. Fisker crumbled under its founders' whims, leaving its HQ in complete disarray and signing a deal with American Lease to help owners with recall repairs. Canoo has struggled to maintain enough cash to operate, furloughing workers in December. Faraday Future, despite raising over $1 billion when it merged with a SPAC in 2021, is also sinking fast, with data mining company Palantir now owning an 8.7% stake in the company after Faraday was unable to pay for services rendered.

Rivian, one of the only new EV players that didn't go public through a SPAC, hit some major milestones in 2024, including unveiling its next-generation R2 SUV and a surprise R3 hatchback. However, the EV maker faced speed bumps along the way, including a series of lawsuits alleging top executives of harassment. Rivian snagged a $6.6 billion loan to restart production on its Georgia plant, although it appears that deal was helped along thanks to a secret agreement with the United Auto Workers union.

In the electric vertical takeoff and landing (eVTOL) space, 2024 was a year of big intentions. Joby Aviation and Archer Aviation shared plans for future commercial electric air taxi launches starting in 2025. Both companies tried to secure more cash to achieve Federal Aviation Administration certification and launch commercial air taxi services in 2025. However, not every startup has been so lucky, with German eVTOL startup Lilium filing for bankruptcy after failing to raise enough capital to continue. In December, the company shut down and laid off 1,000 workers, but appears to have gotten a last-minute lifeline from an investor.

The micromobility space saw the last gasps of consolidation, pivots, and a few survivors. Tier and Dott finally merged, and Lime continued on its steady path to, if not consistent profitability, at least sustainability and market dominance. VanMoof's bankruptcy in 2023 revealed how difficult it is to scale a new e-bike business, despite a consumer appetite for sexy, sleek e-bikes. Cake filed for bankruptcy at the start of the year, and Onyx Motorbikes was on the verge of bankruptcy itself when its 37-year-old owner died suddenly, leaving an absolute mess in his wake. Cake and Onyx have been given fresh chances of survival in 2025.

As the transportation sector looks to 2025, it's clear that the whiplash of 2024 will have lasting impacts. The industry will continue to evolve, with companies adapting to shifting consumer demand and regulatory landscapes. One thing is certain: the road ahead will be filled with twists and turns.