Nearly two decades ago, Elon Musk's Tesla opened the way. The world's shift to completely electric vehicles is already littered with entrepreneurs, driven by a new age in mobility and the cheaper cost of manufacturing EVs than its fossil fuel-guzzling predecessors. With its "Made in Italy" design, a new electric vehicle startup in Italy is now taking on American and Chinese competition.
The multibillion-dollar investments that turned traditional auto manufacturing into such a good source of income are no longer present. Suppliers provide pre-built generic electric platforms, and manufacturers can accept contracts for assembly — measures that result in savings on infrastructure and employment.
But now there's a new kid on the block determined to rival Tesla and China. A new design idea is what the new EV formula has been lacking, claims Milan-based startup AEHRA. The company's AEHRA CEO, Hazim Nada said that “Electric vehicles are looked at as being boring by the public. It is very easy to build an extremely powerful electric vehicle. It is not so easy to build an electric vehicle that has character. And I think that’s one of the elements that Italian-ness has to express.”
Nada is prioritizing aerodynamics over performance and has enlisted a former Lamborghini designer to help bring Italian feeling into his automobiles. However, the business seeks to compete in a sector that is becoming increasingly congested with EV startups and established automakers who are under pressure to reduce glasshouse gas emissions from cars. Some businesses have not been extraordinarily successful.
AEHRA SUV Rear View
Midway through 2025, AEHRA intends to introduce its first vehicles, an SUV, and a sedan, with an initial yearly production of 20,000 to 25,000 units. The ultra-premium automobiles are expected to cost between $160,000 and $180,000. Prior to launching in China, they are anticipated to roll out first in the United States and important European markets.
Most of the beginning capital was generated by Nada's trading of crude oil in London, where he also developed his love of aerodynamics by creating AeroGravity, the largest vertical wind tunnel in the world and an attraction north of Milan that lets visitors experience freefall. While the middle class and low-income workers are feeling the effects of inflation, the AEHRA's cars are for the wealthy, and governments are pressuring automakers to move away from internal combustion engines.
By banning the sale of new fossil fuel-burning vehicles by 2035, the European Union will encourage the emergence of new market competitors with reduced startup costs while potentially penalizing established automakers who have made enormous investments in hybrids as transitional technologies.
AEHRA View with Doors open
According to the European Automotive Manufacturers Association, sales of battery electric vehicles increased by 22% to over 259,000 units in the third quarter, the highest rise of any fuel type. This represents a 12% market share. As demand rises, scores of fresh companies are joining established automakers like Tesla and those with histories dating back more than a century. There are 417 EV startups in just the U.S.
Faraday Future, a California-based company, has spent billions on an electric vehicle it has yet to construct. Due to constraints in the global supply chain, other companies that have begun production, such as Lucid or Rivian, have had difficulty obtaining components. Throughout parallel, Chinese producers are expanding in Europe with an eye towards the American market. Ferrari and Lamborghini have made plans for their own EVs in the Italian premium market.
All about Design
It will be lot harder for Tesla now than it was a decade ago, when they were essentially the only company producing a high-end, high-performance EV. Now, dozens of brands are engaged in this competition for the same dollar. Service and support are also a risk, particularly when expanding across vast geographic areas without existing sales and service networks. The majority of AEHRA's strategies call for online sales and local service centers. The design of an internal combustion engine, which Nada claimed has been conditioned by thermal management, is where AEHRA aims to attract market attention.
The AEHRA vehicle body is reverting to a softer line evocative of pre-war automotive design, moving away from the edges that have recently marked the muscularity of supercars. According to AEHRA Chief Design Officer Filippo Perini, this stylistic change enhances the car's aerodynamics, which will aid in extending range. Greater cabin room for passenger comfort will result from the reconstruction of the traditional internal architecture. Nada is certain that younger customers are less sentimentally connected to the nameplates of their parents' generation and will be willing to purchase a car from a new player who delivers an emotional shift.