Posted on 11/14/2022 4:42:41 AM PST by dennisw
By Akash Sriram
(Reuters) - Every time Lucid Group Inc or Rivian Automotive Inc sells an electric car, they are losing hundreds of thousands of dollars due to staggering raw material and production costs, their latest earnings statements showed.
Quarterly reports from electric vehicle (EV) makers from the past two weeks show them struggling to hit delivery targets and rapidly burning through cash.
Lucid's cost of revenue surged to $492.5 million in the July-September quarter from $3.3 million a year earlier, and its losses widened as customers canceled orders fearing long wait times.
The company, which went public a little over a year ago and is backed by Saudi Arabia's Public Investment Fund, saw its market value shrivel by two-thirds this year to about $20 billion from $95 billion at its peak in November 2021.
The company said it had enough cash to sustain itself at least into the fourth quarter of next year and is looking to raise about $1.5 billion through a stock sale. Its stock price slumped 17% after results, and clawed back some losses in the next two sessions to finish on Friday down 4.4% from before it reported.
Graphic: EV stocks slump on production pushouts, deep losses, cash bur https://graphics.reuters.com/ELECTRICVEHICLES-STOCKS/gkplwgmdzvb/Pasted%20image%201668198479064.png
U.S.-listed British firm Arrival SA warned last week it may not have enough cash to keep its business going toward the end of next year, and would have to cut jobs. It has yet to start mass production.
"I'm not going to sit here and tell you it's not a difficult time," Avinash Rugoobur, president of Britain's Arrival SA told Reuters on Friday.
"It's tough, we are there every day, every night, working on technologies, the vehicles and also the capital raising."
(Excerpt) Read more at finance.yahoo.com ...
This is so insane, it’s like trying to replace gas powered vehicles with rubber band powered ones
In that other recession back in 2008-2012... Warren Buffet famously said ____ “When the tide rolls out, you can see who has been swimming naked”
“But its cost of goods sold was about $220,000 per car versus an average selling price of $81,000 in the quarter, CFRA estimated.”
There aren’t with government subsidies in the world to cover that cost. But then, I don’t think it’s about making EVs affordable for the public...it’s about lining politician’s pockets.
This is no problem. The government will mandate that no electric car can go over 30 miles without recharging. So, fewer batteries needed/cheaper, everyone can have one..
with= enough
My wife’s uncle bought a new Lucid EV a couple of months ago. He paid more than $150,000. He (age 89) and his wife broke down in their new EV in Arizona and had to get a rental car (gas-powered) to continue their trip.
Starting up a car company from scratch is pretty much a fool’s errand.
See DeLorean.
And it’s a lot worse now with all the regulations to be met.
Ironically, some of us conservative families in the south like having one EV in our two-car garage to give us a diversification on energy dependency. If the Dims mess up gasoline supplies, we have an EV. If the Dims mess up power, we have an ICE pickup.
A few of us in the south like having an EV because we have solar to make our homes somewhat energy independent. The EV is a good way to utilize the excess power your solar system generates beyond what your house needs. We don't think solar is saving the world or any of that hogwash. We like weaning ourselves from dependency on things that the Dims overregulate, like energy.
They will make it up on the volume!
The "Green" Leftists will send more third-world children into the mines.
https://www.dailymail.co.uk/news/article-4764208/Child-miners-aged-four-living-hell-Earth.html
You are logical and practical. DC should not be dictating and subsidizing via EV tax credits. EVs and hybrids work for some family situations.
Mine is Honda Fit ICE and we like it
“Much of the social history of the Western world, over the past three decades, has been a history of replacing what worked with what sounded good.” -Thomas Sowell
Ha! So right! That guy is brilliant.
They could just cut out the middle man and import child slaves to pull their carriages.
Not a problem.
They will make it up on volume. /s
Sounds like you’re using some common sense there!
That can’t be allowed…
It'd be nice if everything else we bought was half made in the developed world and at most 2% made in a child slave labor world.
So, only 1 in 50 EVs is a slave car, or 1 mile out of 50 you drive is slave powered. Not bad.
Of course less than 1 in 50 American citizens owned a slave in 1860. Also not too bad either, I guess.
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