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Electric vehicle start-ups face their toughest challenge: making cars

Investors have bet heavily hoping to find the next Tesla, but many EV groups are struggling to make the production process work

Just outside the English market town of Bicester, 15 miles from Oxford, lies the shell of a factory that sits at the forefront of the electric vehicle revolution in the UK. Under a cavernous warehouse ceiling, dozens of gigantic black robotic arms sit poised over the vacant assembly bays, waiting to mass produce electric vans for Arrival, the EV maker start-up.

By autumn, this pristine hub is supposed to begin producing electric vans for UPS, the US parcel delivery group. But already the work is behind schedule. A sister plant in the US will not be ready in time, and so the UK factory will have to shoulder the bulk of this year’s production. Arrival now expects to make just 600 vans this year, less than half the number it promised analysts during 2021.

The company is not alone. A plethora of electric vehicle maker wannabes — some opening factories for the first time, and many with eye-watering valuations — are facing their biggest challenge yet: making vehicles. From China’s Nio to the Amazon-backed, one-time Wall Street darling Rivian, almost every one of the auto world’s feisty new entrants has stumbled at this stage.

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