The Price of Electrification in the Automotive Industry: Only the Resilient Survive

It’s not new for once-beloved automotive brands to fall into trouble due to poor strategic decisions.A striking example is the group of brands now under Stellantis — many of which were once independent manufacturers that had to merge under one company after facing financial difficulties.

The shift to electrification brought a new set of challenges to the industry.Manufacturers invested heavily in an evolving, not yet mature technology. However, vehicles became outdated within a few years, sales declined, and investments failed to pay off.

Worse still, for a long time, Tesla was the only company making a profit from electric vehicles — and even Tesla nearly lost its profitability in the second quarter of 2025.

The traditional internal combustion engine business model didn’t translate to electric mobility. Companies needed to create new business models, but most failed to do so. Today, very few automakers are truly profitable.

As seen in the smartphone industry, many players will likely exit the market, leaving a few strong ones to benefit from reduced competition and improved profitability.

In business, weakness is never forgiven — and the rule still stands:

“It’s not the best who survive, but the most resilient.”