By Emily BazelonThe world is slowly turning into an electric car economy.
But while the electric car market is growing fast, it is also facing a problem: It has a lot of money to invest in manufacturing and the development of new battery packs.
But some are working to change that, and a group of investors, including Tesla, is taking a different approach: They are using $50 billion in venture capital to build electric car companies that they believe will be profitable by 2023.
The $50-billion venture capital fund is being funded in part by Sequoia Capital, which was founded by Elon Musk, and Tesla’s Model S, an electric sedan that the firm says will sell for $69,000.
In a blog post announcing the fund, Sequoias chief executive, Lyndon Rive, said the funds’ investments “will help drive the transition toward a sustainable electric car and electric mobility industry.”
The fund is also targeting automakers like Ford and General Motors, but is focused on startups and companies that can build electric cars in a low-risk, low-cost manner.
It’s not just Sequoians investment that’s different: Sequoian investors are also looking to build and invest in the technology that powers the new electric vehicles, which will include autonomous driving systems and battery packs that run on solar and wind energy.
“We believe that the future of electric mobility lies in building and deploying the technologies that will enable us to drive the transformation,” Rive wrote.
The Sequois investment will go toward building a new $150 billion startup fund for electric car technology called SequoIAV.
The Sequo-funded fund is currently focused on helping automakers and electric car manufacturers make the transition to electric vehicles.
Tesla is a member of the SequoIASAV, which has $20 billion in investment.
“Tesla is the only carmaker in the world that can actually build and deploy the technology for electric cars,” Sequoiam Capital CEO Peter Bock said in a statement.
“But we have a very large stake in the ability of other companies to do the same.”
Tesla says that it is investing in a number of companies that are building vehicles powered by batteries from a mix of companies.
For example, Tesla has invested in several companies that specialize in solar panels.
The company says its investment in these companies “will be a direct benefit to our customers.”
“We have a great track record in partnering with electric vehicle companies, and we’re confident that we will be able to support these businesses and our customers,” Bock added.