First Rivian, Now Nio: EV Makers Are Lighting Money On Fire To Compete
Portfolio Pulse from Adam Eckert
Electric vehicle (EV) manufacturers are spending heavily to compete in the booming EV market. Chinese EV maker NIO Inc (NYSE:NIO) reportedly lost about $35,000 per car last quarter, selling about 8,000 cars each month. The company is investing in differentiating features like augmented reality glasses and a high-end smartphone that communicates with its vehicles. US-based Rivian Automotive Inc (NASDAQ:RIVN), backed by Amazon.com, Inc. (NASDAQ:AMZN), is also focusing on demand, maintaining its pricing structure despite a pricing war among other EV makers. Rivian lost $32,594 per vehicle in Q2, but this figure is improving.
October 05, 2023 | 6:35 pm
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NEUTRAL IMPACT
Amazon-backed Rivian is maintaining its pricing structure despite a pricing war among other EV makers.
Amazon's backing of Rivian could provide some stability to the stock, neutralizing any short-term negative impact from the company's losses.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Rivian is also losing money per vehicle but is seeing improvements quarter-over-quarter.
While Rivian is losing money per vehicle, the improving trend could neutralize the short-term impact on its stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100
NEGATIVE IMPACT
NIO is losing money on each car sold but is investing heavily in differentiating features to compete in the EV market.
NIO's heavy spending and losses per car sold could negatively impact its short-term stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100