Under the impact of the price war, electric vehicle start-ups failed in their financial reports and successively lowered their production targets.
(Reuters file photo)
[Financial Channel/Comprehensive Report] Electric vehicle leader Tesla (Tesla) has cut prices and continued to promote sales growth. In addition, traditional automakers have launched low-priced electric vehicles, which has hit electric vehicle start-up companies, from Fisker, Lucid to Nikola ( Nikola) have both disappointed investors and announced cuts to production targets, deepening weak demand and an ongoing price war.
"Reuters" reported that after electric SUV maker Fisker and "Tesla in the truck industry" Nikola both announced losses on Tuesday (9th), their stock prices fell by 7% and 13% respectively; Lucid shares also fell 6% on Tuesday after the performance.
Please read on...
Fisker, which only started production of the Ocean SUV in November last year, had a net loss of US$120.6 million (approximately NT$3.7 billion) in Q1, exceeding expectations. It held US$652.5 million (approximately NT$20 billion) in cash.
Fisker also lowered its annual production target to between 32,000 and 36,000 electric vehicles from 42,400.
Garrett Nelson, an analyst at CFRA Research, said increased competition from the flood of new electric crossovers and SUVs entering the market should affect Fisker's revenue.
Losses are expected to balloon as Fisker ramps up production, Nelson added.
Nikola produced 63 electric vehicles in Q1, consuming US$240 million in cash (approximately NT$7.38 billion), and had a net loss of US$169.1 million (approximately NT$5.2 billion) in a single quarter.
Anastasiya Pasterick, the company's chief financial officer, pointed out that the current level of cash consumption is not sustainable for the company's business and is currently considering various options to reduce expenses.
Lucid had a net loss of US$779.5 million (approximately NT$23.95 billion) in Q1. During this period, it produced 2,314 electric vehicles and burned US$835.7 million (approximately NT$25.7 billion) in cash. Cash and equivalent cash fell to 900 million US dollars (approximately NT$27.65 billion).
This year's production target has been adjusted to more than 10,000 vehicles from the original forecast of 10,000 to 14,000 vehicles.
The companies' downbeat outlook underscores the challenges cash-strapped electric vehicle startups are facing as their plans to upend the auto industry are unraveling amid rising interest rates and increased competition.
According to the Whole Mars Catalogue, an electric vehicle blog, Lucid lost US$554,429.59 (approximately NT$17.05 million) for each electric vehicle delivered in Q1.
Elon Musk, who led Tesla through "production hell," also tweeted that it is easy to launch a prototype car, but it is difficult to actually produce it, and it is even more painful to achieve positive cash flow.
Grasp the pulse of the economy with one hand I subscribe to Free Finance Youtube channel
Already added friends, thank you
Welcome to 【Free Finance】
Already liked it, thank you.