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Rivian, Lucid and Fisker 'may go bankrupt' as Tesla continues to cut prices - Global Equities Research

 
Published Apr 19, 2023 09:42AM ET Updated Apr 19, 2023 10:01AM ET
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Rivian, Lucid and Fisker 'may go bankrupt' as Tesla continues to cut prices - Global Equities Research© Reuters Rivian (RIVN), Lucid (LCID) and Fisker (FSR) 'may go bankrupt' as Tesla (TSLA) continues to cut prices - Trip Chowdhry
 
TSLA
+5.87%
 
FSR
+1.23%
 
LCID
+5.44%
 
RIVN
+15.22%
 
MBGAF
-0.50%
 
POAHY
-0.01%
 

By Vlad Schepkov

Global Equities Research has shared its rather grim outlook for the Electric Vehicle (EV) industry, after Tesla (NASDAQ:TSLA) announced yet another round of price cuts earlier today.

In their latest note, the analysts warned that with tech layoffs continuing and "accelerating recession," the "EV and automotive sales will continue to remain weak."

They noted that despite today's cuts - TSLA reduced the pricing range on Model 3 to $40K-$52K from $42K-53K, and on Model Y to $47K-54K from $50K-$57K - the vehicles are still "priced out of market," and they believe "more price cuts are needed in this brutal recession."

As such, they warned that Rivian Automotive Inc (NASDAQ:RIVN), Lucid Group Inc (NASDAQ:LCID), Fisker Inc (NYSE:FSR) "may go bankrupt," as the companies simply won't be able to stay competitive given "the scale and operating efficiencies of TSLA." The analyst also sees plummeting sales for luxurious EVs sold by Porsche (OTC:POAHY) and Mercedes (OTC:MBGAF), noting those are "priced out of the market."

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Rivian Lost $6.8 Billion Last Year as Production Fell Short

The maker of electric trucks said it expected to double production in 2023 as the supply of parts became more reliable.

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A close-up shot of a forest green Rivian R1T pickup truck driving on a dirt road. Rivian, a maker of electric trucks, said on Tuesday that it lost $6.8 billion in 2022.Credit...Bryan Derballa for The New York Times

Feb. 28, 2023

Rivian, a maker of electric trucks, said on Tuesday that it lost $1.7 billion in the final three months of last year as it struggled with production difficulties.

The loss brings the company’s total losses for 2022 to $6.8 billion and highlights the troubles that once-promising start-ups are having gaining ground on Tesla, which dominates the electric vehicle business. Last week, another young automaker, Lucid Motors, said that it lost $2.6 billion in 2022.

Rivian said the supply chain problems that dogged it last year would continue this year but become easier to anticipate. The company said it expected to produce 50,000 vehicles this year, roughly twice as many as it did in 2022.

In a conference call, Rivian’s chief executive, R.J. Scaringe, said the company was working to reduce costs, especially now that Tesla had cut the prices of its cars by as much as 20 percent. Driving costs down “is our core challenge today,” Mr. Scaringe said.

 
 

He added that demand remained “robust,” noting that the company had a backlog of orders that it expected to last into 2024.

Rivian brought in $663 million in revenue, and delivered 8,054 vehicles, in the fourth quarter of 2022. On a full-year basis, it had revenue of $1.7 billion, and delivered 20,332 vehicles, in 2022. It produced 24,337 vehicles last year, just short of its reduced goal of 25,000.

The company said it had $11.6 billion in cash and cash equivalents at the end of December, down from $18.1 billion a year earlier.

Rivian, which is based in Irvine, Calif., makes an electric pickup truck, a sport utility vehicle and a delivery van. The company has attracted several deep-pocketed investors, including Amazon, which has placed a large order for the manufacturer’s vans. Ford Motor also invested in the company but ultimately decided not to collaborate with Rivian and sold most of its stock.

The company’s inability to quickly increase production at its plant in Normal, Ill., has limited sales, and its stock price has plunged. On Tuesday, it was trading around $19, down from around $47 a year earlier. The company’s share price was about 8 percent lower in extended trading after the release of its earnings report.

 
 

Rivian said it expected to report a loss of $4.3 billion in 2023 before taking into account interest, tax and other expenses.

 

Neal E. Boudette is based in Michigan and has been covering the auto industry for two decades. He joined The New York Times in 2016 after more than 15 years at The Wall Street Journal. @nealboudette

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2 minutes ago, X2700 said:

Not sure what’s up with rivian but every week I see more of them in Rochester area.

They had a great quarter beating expectations as they ramp up production more then expected.

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i was in europe for 10 days in may. for another cruise. got on the boat in bordeaux  france. the place they had a peaceful protest by the looks of the cars piled up that were burned along with the tires they burned on the lawn of a goverment building. we were ashore every day all told between cars and motor cycles i counted about 20 that were electric. there was a tesla dealer that had maybe 50. in france there are no solarfarms none that i saw. when i was in the wheelhouse talking to the crew i did see a offshore wind mill farm on radar he pulled it up on the plotter it was quite large. in Belgium the wind mills are everwhere but no solar. the port we tied up in. there big export imp[ort was cars 2.5 million a yr along with equipment. thousands of case new holland and some cat machines. and there was a russian oil tanker docked in france. the world runs on diesel fuel look around besides in your back yard. its not going to change for a long time really long time.  half the cars over there are diesel and a lot of cars are manual trans. one of the crew in the wheelhouse is from serbia i asked what he thought of the war in ukraine he said its just the west making money again

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On 7/3/2023 at 1:55 AM, toslow said:

Probably around 350 to 400

good chance i could drive across canada on 400 bucks 

 

I’ve driven my versa to Florida 3 times now and it was less than 80 bucks one way back when gas was cheap. Todays prices to go 2700 miles $230 bucks for a car that cost 16k new today no stupid ev will come close to being that cheap and I’ve proven it on here with all the numbers before. The ev lovers always like to conveniently forgot to factor in that 30-50k they spent on solar panels too for their “free” fuel.

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In California, where electric vehicles make the most sense, if you charge your EV at anytime other than super off peak hours, it’s cheaper to drive a gas car 

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9 minutes ago, ACE said:

In California, where electric vehicles make the most sense, if you charge your EV at anytime other than super off peak hours, it’s cheaper to drive a gas car 

Depends if you got a Tesla with free charging or not.

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9 minutes ago, spin_dry said:

EV's aren't going anywhere. 

I agree there is a market for them, but to think you’re saving money and the planet by buying one is a false promise made to themselves 

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2 hours ago, toslow said:

I agree there is a market for them, but to think you’re saving money and the planet by buying one is a false promise made to themselves 

Same can be said about having a second vehicle for gas mileage.  :lol:

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Easy little road trip.  6 hours and 40 minutes total including charge time.  422 miles. 17 minute total in 2 stops.  $15.13 in cost for super charging.

In at 1st stop

IMG_3017.thumb.jpeg.ae92226ab06d02fc150b95bc002483aa.jpeg
 

out at 1st stop

IMG_3019.thumb.jpeg.161cbccc661560d0d9f3cc23c0c49b35.jpeg

 

 

in at 2nd stop

IMG_3021.thumb.jpeg.46c2050529330ccf36922ceb0385efda.jpeg
 

out at 2nd stop

IMG_3023.thumb.jpeg.b1bbbe518e18ea4d8ea88371d1584898.jpeg
 

 

in at destination

IMG_3027.thumb.jpeg.5b40a4db426a3a2c68a68fac3640101a.jpeg

Edited by BOHICA
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For that 15 bucks you spent i could go that distance and not have to stop 

so we are averaging about the same distance dollar wise, only difference is i don’t have to stop 

Edited by toslow
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31 minutes ago, toslow said:

For that 15 bucks you spent i could go that distance and not have to stop 

You must not have a healthy inside or a diet if you don’t have to stop and piss in 6-7 hours.

 

nissan Mirca 9 gallon tank.  35 mpg highway as listed by owners on fuelly and also Nissan Canada website you are stopping for fuel no matter what you tell yourself

 

but let’s say you don’t have to stop it will cost substantially more as fuel prices at my destination…..

 

 

IMG_3030.jpeg

Edited by BOHICA
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Can you fucking imagine photographing your dash every time you stop?

I imagine a gaggle at a hotel bar comparing mileage and electric rates over a few Bud Lights.

And people call Trump a cult... :lol:

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