EVs "Shoring" Up Cash -- May 11, 2024

Locator: 47125EVS.

Link here. 

From the linked article:

Once-hot electric vehicle startups — years ago fueled by low interest rates, free cash and Wall Street bullishness — are now scrambling to prove they can survive in tougher market conditions. That is if they haven’t gone bankrupt already.

Chief among their talking points: cash.

Executives of Rivian Automotive, Lucid Group and Nikola Corp. this week each detailed plans to reduce costs while attempting to grow operations and make their first profits. Those efforts have ranged from job cuts and production changes to supplier rearrangements and shifting priorities.

The scramble comes as EV adoption takes hold slower than many expected and after companies spent billions in an attempt to rush vehicles to market to gain first-mover advantages in white-space segments.

Of those three automakers, Rivian is in the strongest cash position as EV adoption struggles. The company says it has enough cash to get through its big R2 launch in early 2026.

The slowdown, as well as the increased competition, has even impacted U.S. EV leader Tesla

, which is in the midst of a global restructuring that includes laying off roughly 10% of its workforce.

Wall Street analysts have referred to the current state of the electric vehicle market as an “EV winter,” an end to so-called EV Euphoria or, more optimistically, a temporary pullback that carmakers will need to overcome for long-term gains.