CIIG shares have fallen by more than a fifth since hitting a record high in December. Until the firms’ announced merger, Sverdlov had mostly funded the venture himself.
Arrival, which plans to begin testing some of its vehicles on public roads this year, has said it can avoid the financial pitfalls that most vehicle makers encounter by building tiny factories that cost a fraction of those constructed by large, commercial carmakers. The start up intends to have 31 plants by 2024, and hopes to begin generating a profit even earlier.
“There are more than 560 cities in the world which have a population of over 1 million people, and each of these cities could have a microfactory producing 10,000 vehicles specifically tailored for the needs of that market,” Sverdlov said recently. “This model can be as scalable as McDonald’s or Starbucks.”
This article was provided by Bloomberg News.