Lightyear says that it hasn’t taken this decision to pivot lightly, as it impacts its “employees,” “investors,” “clients,” “suppliers,” and “the government.” The reason behind the move remains vague, with the announcement citing “challenges” over the past months, which made the action a necessary step to “safeguard” the startup’s vision.

It’s not unreasonable to assume that battery supply bottlenecks, semiconductor shortages, and rising costs of materials due to inflation might have impacted Lightyear. And beyond that, with recession concerns increasing, switching from a limited luxury product to a more affordable one seems like a timely strategic move.

With the Lightyear 2, the company is targeting an entirely different (and wider) market, compared to the first model that was mainly intended as a technology demonstrator to be produced in limited quantities.