Electric racing series Formula E is focusing on the U.S. and Asia for investments and growing the championship. Formula E CEO Alejandro Agag said, “The U.S. and Asia are more open to change and to progress in the industry.” Agag specifically pointed to the U.S. West Coast and China as the main drivers for the growth of electric cars. While the series believes that Europe will eventually catch up, it does not see it as the driving force. “We are convinced that Europe also will follow, but it will not lead in this revolution toward electric cars,” Agag said. The championship, which will kick off in September, has reportedly already lined up a further $40M in investments. Agag said that on top of their financial investments, some investors will also make strategic contributions to the business. The new round of investors will most likely include U.S.-based companies. In December, the racing series’ parent company, Formula E Holdings, sold a 10% stake in the business for an estimated $21M to U.S. investment fund Causeway Media Partners. “In particular for investments, the United States is where we are seeing the most interest,” Agag said. Formula E is expected to announce its new round of investors in the next several weeks.
PUT YOUR NAME ON IT: In addition to investments, the series is in discussions with four companies about the championship’s main sponsorship package. Agag said, “It’s the naming rights for the cup, which we think is a very important asset to have for a sponsor.” Formula E is currently weighing the options on whether it should make a decision on the naming-rights package before the first race or wait until the season starts. Agag said that waiting until the championship is under way could increase the package’s price as it becomes a much more visible reality. He said, “Both possibilities are open. It will very much depend on the company, the strategic alignment and so on. There’s a good amount of interest for that package as well as for the other lower packages.” The naming-rights package will have a price tag of around $25M, according to the London Independent.
THE ELECTRIC CAR VISIONARY: Formula E has attracted several big-name teams for its inaugural season, including Andretti Autosport and Jay Penske’s Dragon Racing. However, a big name on the U.S. West Coast has decided not to participate -- Elon Musk. The founder and CEO of electric car manufacturer Tesla Motors will not be involved in the series. Agag said, “What Elon Musk told us was that he was focusing very much on his road-car program, and at the moment he has no intention to go racing.” While Musk’s name will not be associated with Formula E for now, Agag respects the entrepreneur and hopes to have Tesla join the series at some point. “I think what Elon Musk has done for the image of the electric car has been fantastic,” he said. “But unfortunately at the moment we won’t have them with us.”
