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As demand for electric vehicles (EVs) grows in the U.S., high insurance and repair costs for these tech-heavy cars have slowed their sales. A 2024 J.D. Power study showed only 26% of U.S. car buyers are “very likely” to consider an EV purchase, while over 20% are “very unlikely.”
Santa Ana, California-based startup Kinetic Automation aims to cut EV ownership and repair costs by offering advanced diagnostic and recalibration services for modern vehicles. With about 40 full-time employees, Kinetic has created a robotic system that uses computer vision and machine-learning software to quickly identify issues with a car’s digital systems.
CEO and co-founder Nikhil Naikal explained that new EV models come with advanced technology like touchscreens, infotainment software, and numerous sensors for safety and rapid charging. Traditional repair shops can handle physical fixes but often find digital system repairs time-consuming and costly.
Kinetic’s robots assist these shops and dealerships by precisely programming and recalibrating a vehicle’s sensors, software, and computers. At Kinetic’s service bays, cars are scanned with machine vision sensors to identify needed repairs. The company’s software then manages these fixes.
Kinetic has set up its first four service hubs in Las Vegas and Orange, San Bernardino, and Riverside counties in California. To support its growth, Kinetic raised $21 million in Series B funding, led by Menlo Ventures and joined by Allstate Strategic Ventures, Liberty Mutual Strategic Ventures, and early investors Lux Capital, Construct Capital, and Haystack Ventures.
Menlo Ventures’ Partner Shawn Carolan, who has invested in Uber and Jump Bikes, said repair shops and dealerships working with Kinetic have reported faster and cheaper repair times.
Before starting Kinetic, Naikal was VP of software engineering at Velodyne, which makes lidar sensors for autonomous vehicles. COO Chris Weber previously worked at Uber, and CTO Sander Marques is an experienced tech entrepreneur.
Kinetic plans to eventually provide its services to robotaxi fleets and other autonomous vehicles. Currently, the focus is on expanding service hubs across the U.S. and training technicians to handle the growing number of EV repairs. Kinetic frequently works on Ford Mach-E, GM Chevy Bolt, Hyundai Ioniq EVs, and some Teslas at its hubs.
Market research firm Canalys forecasts that EV sales in North America will reach 2.2 million units in 2024, making up about 12.5% of all new vehicle sales. Naikal hopes Kinetic can help lower EV-related insurance costs and encourage more people to switch to electric vehicles.
