Mobility for a better place
1. Why do investors believe Agassi will succeed?
Mr. Agassi established a large network in Davos, Switzerland during the first time he went there. By establishing this network he met important people in the industry and this creates a higher acceptability for your idea. Also, in 2005, a new generation of batteries was launched on the market, which enables the batteries to recharge faster thus makes them more suitable for in the EV industry.
I think that with his different view on the batteries, Mr. Agassi could best convince people that his idea would succeed. Up till then, the view on EV was that batteries were part of the car. Mr. Agassi turned away from that view and focused on the fact that the battery is not a part of the car, but of the whole infrastructure.
2. What are the major hurdles ahead for Better Place?
One the major hurdles, not only for Better Place, but for all Electrical Vehicles, is the need for a paradigm shift in the current infrastructure. The range of the car is seen as a major drawback of EV, as this is shorter than the range of an ICE car. Also, the infrastructure for recharging the battery can be an issue: The cost of battery replacement is substantial and in the current business model, Better Place, carries all the risk of the EV. The batteries have some other hurdles too: If the production of batteries would be scaled up from this moment, which would create a scarcity in some of the key materials. This scarcity, for example for lithium, enlarges the dependency on countries that posses large quantities of these raw materials due to their geographical location.
One last hurdle, and one of the most important for Better Place, is fundraising for their project.
3. Once successful, how can Better Place protect its business against copycats? To successful protect this idea for EV, Better Place, must be able to use their first-mover advantage, and use this to make this solution the...
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