Elon Musk has actually shared his unfiltered viewpoints on Tesla competitors Rivian and Lucid after their Q4 incomes reports.
Discussing Lucid’s Q4 revenues, Musk stated, “Their Saudi sugar daddy is the only thing keeping them alive,” associating the business’s continued operations to the considerable financial backing got from the general public Investment Fund (PIF) of Saudi Arabia.
BREAKING: Lucid simply reported their Q4 profits outcomes, missing out on expectations.
– Rev: $157M vs $182M est (down -39% YoY)
– Net Q4 loss: $636M (up 35% YoY)Lucid states they anticipate to produce just 9,000 automobiles in 2024 pic.twitter.com/yHxncsGWZQ
— Sawyer Merritt (@SawyerMerritt) February 21, 2024
Their Saudi sugar daddy is the only thing keeping them alive
— Elon Musk (@elonmusk) February 22, 2024
The PIF, which holds a bulk stake in Lucid, has actually apparently invested about $5.4 (₤ 4.26) billion into Lucid given that 2018, that includes a $1.8 (₤ 1.42) billion financial investment in the 2nd quarter of in 2015.
In a different post, Musk mentioned that the business’s present market cap is “the choice worth of a Saudi take-private”.
Lucid’s market cap ended up at $8.43 (₤ 6.35) billion at the last close, overshadowed by Tesla’s massive market cap of $617.09 (₤ 466.08) billion. For the 4th quarter, Lucid reported a profits of $157.2 (₤ 115.5) million, disappointing expert expectations, however with a narrower-than-anticipated loss of 29 cents (21 cent) per share.
Rivian faces possible monetary headwinds
Musk, who teased the arrival of brand-new Tesla items last month, raised issues about the sustainability of Rivian’s present monetary trajectory.
He anticipated that the business may deal with substantial difficulties within the next year and a half. He acknowledged the possibility of modification, which depends on different aspects.
“Their item style is okay,” Musk stated of the business, additional keeping in mind that accomplishing volume production with favorable capital is the real tough part of making a vehicle business work.
For the 4th quarter, Rivian reported an overall profits of $1.32 (₤ 1.04) billion and a bottom line of $1.52 (₤ 1.20) billion. Towards completion of the quarter, information shared by Benzinga Pro reveals the business had $9.37 (₤ 7.40) billion in money and money equivalents and an overall liquidity of $10.47 (₤ 8.27) billion, consisting of an asset-based revolving credit center.
Elon Musk alerts of Rivian obstacles
Musk has a track record for precisely anticipating the monetary problems of business. To wrap up, he cautioned of prospective personal bankruptcy for Rivian and Lucid due to their significant costs in June 2022.
What are your ideas about Rivian? Will they make it through?
— DareW (@darewecan) February 22, 2024
“Unless they cut their expenses significantly, they remain in deep problem and will wind up in the cemetery like every other business (automobile) with the exception of Tesla and Ford,” the tech magnate specified.
Lucid has actually been sparing no effort to be at the leading edge of the EV market. In line with this, the business revealed a collaboration with 3 electrical motorsport series consisting of Formula E, Extreme E and E1, last month.
“This unique collaboration with PIF is a big turning point for us in our journey to leader the most advanced sustainable transportation innovation. With many examples of the favorable real-world effect of each series, this 360-partnership takes our possible to the next level,” creator of the 3 champions Alejandro Agag stated.
Rivian, on the other hand, is relying greatly on a brand-new smaller sized lorry called the R2, which is anticipated to get here next month. The business’s newest incomes recommend it lost almost $43,372 (₤ 34254.34) per lorry provided in the 4th quarter.
For contrast, the business lost almost $31,000 (₤ 24483.18) per car in the previous quarter and 124,000 (₤ 97932.72) throughout the exact same duration in 2022.
While Tesla fans may see it as a prospective go back to EV sales supremacy, specifically after BYD surpassed Tesla for the majority of EV sales, Teslarati’s Joey Klender thinks the closure of Rivian and Lucid would not simply be a triumph lap. The reporter sees it as a significant problem for the EV market.
Klender mentioned that competitors cultivates development, varied choices for customers and drives the EV transformation forward. Losing Rivian’s appealing trajectory and Lucid’s well-off backers would turn out to be a substantial blow to the market’s momentum and development.