Posted on 11/17/2022 9:27:45 PM PST by george76
Startup electric automakers are facing a series of crises that could cripple them financially and make it hard to grow in any meaningful way in the future. Inflation and incredible jumps in raw materials costs have led companies like Rivian and Lucid to lose staggering sums of money over the last year.
Reuters reported that some companies are losing money on every vehicle they sell. Lucid’s costs climbed by hundreds of millions of dollars, and some customers have canceled orders over long wait times and delays. The company’s market value has plummeted as a result, but it says it can continue operating through the end of 2023 at least.
Tesla had similar issues when ramping up production of the Model 3, but as Reuters points out, the company didn’t have to face those challenges while competing against several other automakers. Now, Rivian and Lucid have Tesla and several legacy automakers like Ford and General Motors to contend with while also working to shore up spending. At least Rivian has big-name backing from Amazon and Ford, and it’s well-positioned to ride out the rough weather with plenty of cash on hand.
Automakers are cutting costs where possible to weather the storm and survive the approaching harsh economic conditions. Rivian is moving more of its shipping operations to rail, while Lordstown Motors has sold half of itself to Foxconn and slashed output to cut spending.
Stop parking those firetraps indoors and you won’t have that problem
Inflation huh.
Too bad. Wonder what caused that?
A little perspective...
GM started mass producing EVs in 1996!
Freaking twenty-nine years and billions of dollars in federal subsidies to make a profit!
After bankruptcy reorganization in 2010, GM stock was selling for $37.
Twelve years later, it is selling for $38 and pays a 1% dividend.
"43,000"
After bankruptcy reorganization in 2010, GM stock was selling for $37.
Twelve years later, it is selling for $38 and pays a 1% dividend.
Given rampant Bidenflation, both figures translate into a rather large loss...
Here’s my post from yesterday under the “end of the electric car gravy train” thread.
“Not even close to the end of the gravy train. The cost of batteries will end electric cars in the short term.”
EV batteries are dependent upon cheap energy for mining and refining the rare earths and minerals they require.
Huge amounts of earth must be moved, and tremendous coal fired smelters burn things like nickel laterites from hours and hours.
Of course, Chinese lithium batteries are dependent upon Uighur Muslim concentration camps and cobalt from child slave miners in Africa.
Battery powered cars are just like battery powered tools. They aren’t ready when you need them and they won’t take you all the way through the job.
2023 is going to bad year for cash flow - plus a lot of other things
All of us, but especially the morons who voted Democrat, are about to get an education in Applied Economics from the School of Hard Knocks.
Not to worry. Joe can bail ‘em out!
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