What Rivian, Lucid, and Fisker tell us about the current state of EVs

It’s net season, and anyone invested successful nan thought that electrical vehicles are nan early of proscription is all complete Tesla. But Elon Musk’s institution isn’t nan only 1 putting each its bets connected battery-electric vehicles. Three different alleged “pure EV plays” — Rivian, Lucid Motors, and Fisker — besides posted their net this week. And sifting done nan numbers reveals immoderate worrisome trends.

For years, it was assumed that Tesla arsenic good arsenic nan twelve aliases truthful different axenic EV companies it helped spawn, would outmaneuver nan bequest automakers acknowledgment to a laser attraction connected electrical powertrains and artillery production. But today, it’s nan bequest automakers that are posting healthy profits while nan axenic EV companies flounder.

Price cuts, politics, and a stubborn belief that charging an EV is still excessively hard is holding a batch of group back. And nan Tesla imitators are taking it quadrate connected nan chin. Rivian, Lucid, and Fisker each look to beryllium successful various stages of emergency. Let’s commencement pinch nan astir endangered and spell from there.

Fisker

Henrik Fisker’s 2nd effort astatine building a car institution from scratch appears connected nan aforesaid downward trajectory arsenic his first.

The latest news comes not from nan institution itself but from nan statement shaper that makes Fisker’s only model, nan Fisker Ocean SUV. The contractor, Magna International, published its net this week successful which it fundamentally wipes its hands of Fisker by stating that it won’t beryllium making immoderate much Oceans for nan struggling company.

“Our existent Outlook assumes nary further accumulation of nan Fisker Ocean,” Magna says. Moreover, nan institution is facing $75 cardinal successful losses based connected its narration pinch Fisker.

On apical of each of that, Fisker’s Austrian subsidiary revenge for restructuring, which is astir balanced to filing for Chapter 11 bankruptcy. In its astir caller filing pinch nan US Securities and Exchange Commission, nan institution said it only had $50 cardinal near successful nan bank.

Fisker was already connected nan ropes, but this could beryllium nan termination shot. The struggling EV company previously slashed nan value of nan Ocean by astir 40 percent arsenic it looks for a occurrence to debar going retired of business. It’s facing a $13 cardinal lawsuit from nan patient that developed Fisker’s Pear crossover and Alaska pickup truck. And nan institution was precocious delisted from nan New York Stock Exchange for nonaccomplishment to support its stock value supra $1. 

With nary EV, dwindling rate funds, and an exodus from nan nationalist markets, Fisker is moving retired of options.

Rivian

Everyone’s favourite outdoorsy EV institution is facing a superior rate crunch. The institution lost $1.45 cardinal successful nan first 4th of 2024, up from a $1.35 cardinal nonaccomplishment successful Q1 of 2023 — which is simply a staggering level of rate burn.

Fortunately, it has $7.9 cardinal of rate and rate equivalents connected hand, but it acknowledges that further cuts will beryllium basal if it’s ever going to execute stability. Rivian has already gone done several rounds of layoffs successful its short history, but it’s imaginable much could beryllium connected nan horizon.

The bully news is that a batch of cardinal indicators are trending upward: accumulation accrued 48 percent twelvemonth complete year; deliveries are up complete 70 percent; and gross accrued complete 80 percent.

The institution says its outlook remains beardown acknowledgment to respective decisions to trim superior expenditures by moving accumulation of the next-gen R2 vehicles to its Normal, Illinois, facility. Once it’s vanished retooling nan factory, Rivian says it will person capable abstraction to build 215,000 vehicles annually, including 155,000 R2s — which seems wildly optimistic considering nan existent authorities of customer request for EVs.

Still, Rivian finds itself stuck successful nan “EV vale of death,” successful which it has scaled up accumulation but isn’t bringing successful capable gross to screen its operational costs. It’s an particularly susceptible spot for a young institution to be. And Rivian lacks a financial benefactor pinch bottomless pockets for illustration Lucid has pinch Saudi Arabia’s Public Investment Fund.

Lucid

Speaking of, nan luxury EV marque doesn’t nutrient arsenic galore vehicles arsenic Rivian, truthful it mislaid considerably little money this past quarter. Lucid brought successful $172 million successful nan first 3 months of nan year, a 15 percent summation twelvemonth complete year. It mislaid $680.9 million, down from $779.5 cardinal mislaid successful Q1 of 2023. As such, it is sitting connected a $2.2 cardinal heap of rate (and rate equivalents).

Still, having nan immense wealthiness of nan Saudi Public Investment Fund successful its backmost pouch has paid dividends. Weeks earlier releasing its net report, Lucid said it’s raising an additional $1 billion from nan fund, sending its shares to their highest level successful months.

The Public Investment Fund already owns a controlling stake, 60 percent, of Lucid, which illustrates nan automaker’s strategical advantage complete its struggling competitors. They will each proceed to suffer money successful nan adjacent word arsenic Tesla continues to costs a grueling value warfare and customers proceed to waffle complete erstwhile and really to make nan move to EVs. But while Rivian bleeds money and Fisker flirts pinch bankruptcy, Lucid tin support zooming ahead.