Is the tide turning against the EV start-ups aiming to topple established car makers? A few years ago, it seemed that Tesla, Rivian and other arch innovators had the world in their grasp; unencumbered by legacy businesses, industrial footprints and the pesky need to switch from fossil fuels to volts, they had the inspiration and clean-sheet plan to dominate in a carbon-crunched world.
Are they sleepwalking into something that business schools label ‘the innovator’s dilemma’? First identified by academic Clayton Christensen, it’s the process where an arch disruptor innovates so successfully that it wins plaudits, market share and profits by identifying a new market – only to then stagnate as the new kid on the block becomes the norm and is itself targeted by the next wave of entrepreneurs.
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