DETROIT, Dec 15 Reuters The past year was sobering for investors who poured money into Tesla Inc and rival electric vehicle startups that hoped to emulate Tesla CEO Elon Musk39;s success.

As interest rates rose and financial markets gyrated, shares in many EV startups deflated. Rivian Automotive Inc, which had a higher market value than Ford Motor Co shortly after it went public in 2021, lost more than 70 of its value over the past year.

Other EV startups fared worse. Electric van maker Arrival warned it could run out of cash in less than a year. Lucid Group Inc, backed by Saudi Arabia39;s sovereign wealth fund, struggled to build its sleek Air luxury EVs. Chinese Tesla challenger Xpeng Inc39;s shares lost more than 80 of their value.

Now comes the hard part Persauding more mainstream consumers to come along for the ride.

WHY IT MATTERS

The automobile industry is pouring more than 1 trillion into a revolutionary shift from combustion engines to electric vehicles guided by software. From Detroit to Shanghai, automakers and government policymakers have embraced the promise of electric vehicles to provide cleaner, safer transportation. European countries and California have set 2035 as the deadline for ending sales of new combustion passenger vehicles.

Tesla Inc39;s surge to become the world39;s most valuable automaker achieving a 1 trillion valuation last year humbled established automakers such as Toyota Motor Corp and Volkswagen AG that once were reluctant to go…