Posted on 11/14/2022 4:08:06 AM PST by Oldeconomybuyer
(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.
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.
Canoo Inc said in May it had "substantial doubt" about remaining a going concern. At the end of September, it had $6.8 million in cash and equivalents, down sharply from $415 million a year earlier.
(Excerpt) Read more at finance.yahoo.com ...
If you are losing hundreds of thousands of dollars per car the obvious answer is to produce more.
There losing cash pegs my BS meter to the max. Elon was heavily subsidized… maybe they should give his taxpayer dollar grab a spin.
Well if they are burning cash more likely they are burning cash that the corrupt commie Democrat government gave them for being loyal Democrat supporters, and for these companies being in mostly red states and unionized. Before the corrupt Democrat party bails them out, the corrupt CEO’s of these companies (which are friends and relatives of Democrat officials) will stuff they’re pockets full of money. It is Obama Deja vu all over again. It’s all about control and how much wool they can pull over the average American that has no clue what is going on in the real world. Ok I’ll get off this rant and rave of mind because I could go on and on about this corrupt of theirs.
The artical is talking about EV startups. Who wants to invest in an EV startup?
If you are losing hundreds of thousands of dollars per car the obvious answer is to produce more.
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That only works if you can sell more and as of now the market is not there.
There’s a Lucid dealership opening up in my town. There’s already a Tesla dealership here. Whenever I walk past the Tesla place (often) it’s empty.
FTX.
Oh wait, never mind...
How dare you be so greedy as to put your financial welfare ahead of saving the world. Eat less./s
Exactly, make it up in volume.
Just drain their FTX accounts.
We are seeing the aftermath of an environment where artificially low interest rates drove a lot of investment capital into highly speculative ventures.
Drove by what appeared to be a stubborn EV passenger car battery fire, yesterday on a six-lane highway. Thick column of white smoke, hundreds of feet high. TONS of traffic extending back in both directions, giving thousands of motorists an opportunity to observe, up-close-and-personal, one of the biggest drawbacks of EVs.
Our 2016 Hunda Fit gets 30-31 MPG around town, and this is good enough for us. ICE engine of course. The only way I would buy an EV would be to spend 1-2 thousand on a charging station in my garage.
My relative likes his EVs. Four years ago he told me his changing station cost $800. He has a Tesla and a Chevy Bolt or Volt.
“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.”
Oh, go ahead. Start mass production. What does the economy know?
Every budding business mans dream...starting a business enterprise to lose vast sums of money. Who DOES that? Oh...wait....sorry. solynda did that. My bad.
Bankrupting the electric car industry, crippling the oil industry, draining the strategic oil reserves all within two years could shut down America’s modes of transportation.
Poor management or by design?
I had 21” of snow one day last year and a few 10-20 degree below zero days. I am sure an EV would do real well.
And if you do, be sure to buy an extra long charging cable so your car doesn't have to be in the garage, or anywhere close to your house as its charging.
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