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Tesla’s EV Rivals Post Record Losses Amid a Bleak Economy and a Price War

It’s challenging time to run a startup in a capital-intensive industry like electric vehicle manufacturing. High interest rates, a funding drought, and a price war started by Tesla make it difficult for EV makers to fund operations and grow sales. This week, several publicly traded EV makers reported quarterly earnings, offering a first look at exactly how bad business is in 2023 so far.

Lucid reported earnings yesterday (May 8) after the market close. Nikola and Fisker reported this morning, Rivian reported today after the market close.

Lucid: Losses widen, sales growth slows
Earnings: Lost $780 million, or $0.43 per share. Revenue came at roughly $149 million, well below analyst estimates.

Delivery: Made 2,314 vehicles and delivered 1,406 in the first quarter.’

Cash position: Lucid had about $3.4 billion in cash at the end of March, enough to fund the company through the first half of 2024, said CFO Sherry House.

Lucid’s first-quarter sales were up 159 percent from a year ago. But the growth is far from enough to offset costs and justify its stock price. Lucid, which went public in July 2021, is currently valued at $14 billion. Investors were counting on the money-losing startup to grow at an exponential rate to support its lofty valuation.

The company aims to make more than 10,000 electric cars this year. The number is at the bottom edge of its previously stated production goal of 10,000 and 14,000.

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