While there are many electric vehicle startups in China, many (99%) of them will not make it in the long run, according to NIO Capital. In an interview with Bloomberg, company managing partner Ian Zhu said the survival rates of these ‘Tesla killers’ somewhat low.

This is largely due to the large investments required for not just technology, but also manpower to build an electric vehicle. “It’s a very complicated system that needs abundant investments and a large group of people to be able to build a car from scratch. Therefore, the survival rate of all these EV startups will be very low,” said Zhu.

Additionally, most EV startups have yet to manufacture on a large scale or deliver cars in large numbers to consumers. Further complicating matters is the ongoing trade disagreements between the United States and China. Zhu says it “is a real obstruction to the global economy and technology development.”

“If it continues or escalates, it will delay the commercialization of intelligent electric cars as well as slow down global efforts to improve traffic safety and efficiency,” he added.

Zhu also feels that joint ventures between startups and traditional automakers is the way forward as innovation and real manufacturing capabilities can be combined. With many of the world’s electric vehicles being sold in China, it isn’t a surprise that many want to involve themselves in the industry. Even familiar automakers have rolled out their own EVs for the market.

NIO Capital is partly backed by Chinese EV company Nio, which made quite an impact with the EP9 supercar. The company’s ES8 electric SUV looks to take the fight to the Model X in China, with quite a number of orders received already.