The boss of Tesla likes to talk about him and his companies. Invited to an interview, the American billionaire announced that the two manufacturers Lucid and Rivian would go bankrupt if nothing changed for them.
In May 2022, we published a rather alarming article on the financial situation of Lucid and Rivian, two American startups which have recently produced their first electric car model: the Lucid Air and Rivian R1T. Invited to an interview by the Tesla Owners Club of Silicon Valley, Elon Musk did not mince words about his two competitors. The businessman thinks that “if nothing drastically changes for Rivian and Lucid, they will both go bankrupt“. The Tesla boss, however, hopes that Rivian and Lucid “will be able to do something, but unless they succeed in cutting costs significantly, they will be in trouble and will end up in the graveyard of the automakers, like everyone else except Tesla and Ford“. That is said!
It is true that the two American manufacturers are in a very delicate situation. They lose a lot of money on each vehicle produced and do not necessarily have enough cash to stay in this situation for many months. Manufacturers therefore have no choice but to try to reduce production costs as much as possible, but this is difficult without massive investment. All they have to do is raise money again.
Tesla was on the brink of bankruptcy, twice
It is worth qualifying Elon Musk’s remarks by recalling that Tesla found itself on the verge of bankruptcy several times, especially in 2008 during the marketing of the Roadster, but also between 2017 and 2019, during the start of production of the Model 3 as the boss of the brand had specified on Twitter. However, the situation was different since in 2017 Tesla had much less competition than Lucid and Rivian in 2022.
The Lucid Air and the Rivian R1T being excellent products, it seems very likely that investors will support the two American manufacturers in order to avoid bankruptcy. So let’s wait a few more months before drawing such a hasty conclusion as that of Elon Musk.
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