According to Stellantis CEO Carlos Tavares, the company’s gamble on automotive startups this year has paid off, but the world of startups will be affected by the shifting economy. Tavares predicts that startups won’t have as much access to capital in the future due to governments raising interest rates to combat inflation.
He believes the situation is a result of the added “monetary mass that was put in the market.” Tavares is likely referring to the actions governments took during the COVID-19 pandemic, such as giving people stimulus payments to combat the financial impact of the virus. The era of “free money” will come to an end, he expressed on a recent company webcast.
Just a few months ago, Stellantis partnered with various automotive startup companies to ramp up EV production speeds and sales. The company also created a $302 million (300 million euros) venture capital fund that invests invest in early and late-stage startups.
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