Fisher. lucid. Rivian. They all have one thing in common: Apart from the fact that they are all start an electric car, they all had high company valuations before plunging. Now like washington articles Reportedly, we may be at the point of the most powerful electric vehicle company in existence, with several underperforming brands disappearing from the electric vehicle space entirely.
Like many companies during the pandemic, electric-powered startups have skyrocketed multi-billion dollar valuations even though those companies don’t really do much. Although this is the third time the automaker, Fisker IPO filing at the end of 2020. Despite having no products for sale and therefore no revenue, the company is somehow still valued at $8 billion. next summer Public Lucid at a $91 billion valuation after some begging; Rivian follows a few months with an IPO and $121 billion valuation later initial search $80 valuation. Both Rivian and Lucid have these valuations despite their lack of delivery estimates that year.
Worse still, since those IPOs, the value of companies has dropped and a few are burning cash faster than they could raise. So bad:
On Monday, Lucid reported a loss of more than $779 million for the first three months of 2023, compared with a loss of more than $81 million it reported in the same quarter last year. Its cash reserves fell to $900 million, compared with more than $1.7 billion reported at the end of 2022. The company also said it plans to produce more than 10,000 vehicles — at a lower rate. compared with previous instructions.
A day later, Fisker reported a loss of $120 million for the first three months of 2023 and said it had burned through $84 million in cash. The company cut its production target for this year to between 32,000 and 36,000, down from the 42,400 it previously forecast.
On Tuesday, Rivian reported a loss of $1.3 billion for the first three months of this year. It was more liquid than rivals, ending the quarter with about $11.2 billion in cash and equivalents.
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The economy isn’t working in the startups favor either. Interest rates have risen, making outside capital hard to come by. Some experts are likening what’s happening to the beginning of the auto industry, where numerous players were trimmed down to the few that actually provided on their promises. And despite their struggles, some, like Wedbush analyst Dave Ives, think Rivian and Lucid will succeed. Rivian stands out the most. Ives said the startup has the best potential to become a “miniature Tesla-like ecosystem”. Only time will tell.
