Rivian, Lucid and Nikola this week each detailed plans to reduce costs while attempting to grow operations and make their first profits.
The efforts have ranged from job cuts and production changes to supplier rearrangements and shifting priorities.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.this week each detailed plans to reduce costs while attempting to grow operations and make their first profits.
Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weeklyRivian reported $7.86 billion in cash, cash equivalents, and short-term investments to end March, with more than $9 billion in total liquidity. Rawlinson said the $1 billion illustrated the"continued confidence and steadfast support" of the Public Investment Fund, which owns roughly 60% of the company, according to FactSet.
Unlike Rivian and Lucid, Nikola is exclusively focused on commercial vehicles rather than ones to retail customers. Nikola CFO Thomas Okray said the company needs to lower its costs, while continuing to expand its sales, including potentially lowering prices for large customers in order to build scale.
Shares of Rivian, Lucid and Nikola all trade near 52-week or all-time lows, with shares of Nikola – once valued more than– trading for less than $1 per share. That puts the company at risk of being delisted from the Nasdaq, which executives are attempting to avoid through a reverse stock split that needs to be approved by shareholders.
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