Risk of layoffs at AV companies in coming months?
Companies like Cruise and Waymo. No commercialized product, no revenue (let alone profits), commercialization of autonomous vehicles at a significant level is atleast 5 years away, high burn rate. Is it still safe to join? What is the risk of layoff in coming months at these companies?
If they were not supposed to have any revenue till ~2027, how could the market condition now force them to lay off?
They can't raise money as easily now that investors expect higher yield. Layoffs may be needed to prolong their runway. This will likely not affect the big names in the space too much, but the lower tier companies seem in a tough spot.
Well that part is an open secret. The companies have not acknowledged publicly. Cruise had an initial announcement of launching driverless cars in 2019! And it’s delaying a year ever since.
The perceived upside is still very high and due to all the competition, it wouldn’t be wise to lay off a significant portion of the company if the product is still perceived to be on the brink of breakthrough. I’d say risk of layoff is on par with other tech companies. Though I would say Waymo is probably the least likely to layoff compared to other AV companies.
Hiring will slow and companies can thin out. But places like cruise I think are blowing through their capital and when it runs dry it’s not good.
Cruise did make a product
They key is “commercialized product”
they have paid customers? no?
Waymo does have revenue. They're charging for av rides in AZ now
Did cruise start charging customer as well ?
They are saying they just started on some set route on at night but one can tell noway that is scaling to millions of dollars anytime soon. They need such PR news every 6 months to survive
I figure Waymo won’t have to worry about funding, and Cruise has GM line of credit and a developed/proven enough project that they are reasonably likely to be able to fundraisers when needed. Very curious about sentiment at other companies though, seems scary to have that long a road to profits and that high a burn rate in this environment. What are folks at companies like Aurora saying? People must be talking possible acquisition at some of the smaller companies
We’ll be seeing autonomous trucks first. Cars will come later. I have no idea why though. Also, tag some AV companies under your post
I think the first few years of allowing L5 autonomous vehicles will be left upto local voting. Otherwise, the first sign of a L5 vehicle related accident and the state will throw the book at the car manufacturer.