18 EV, Battery Startups Trying To Rival Tesla Likely To Run Out Of Cash Next Year: WSJ
Portfolio Pulse from Benzinga Neuro
A Wall Street Journal analysis predicts that 18 EV and battery startups, including Nikola Corp. (NKLA) and Fisker Inc. (FSR), may run out of cash by the end of 2024. These companies have seen over 80% declines in their stock prices since their market debuts. Lordstown Motors, Proterra, and Electric Last Mile Solutions have filed for bankruptcy, while Romeo Power (RMO) and Volta (VLTA) were sold at lower valuations. Tesla Inc. (TSLA) is increasing pressure on these startups with price reductions.
December 20, 2023 | 9:51 am
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POSITIVE IMPACT
Tesla's price reductions are putting additional pressure on EV startups, potentially impacting Tesla's competitive position positively in the short term.
Tesla's price reductions could potentially increase its market share and investor confidence as it puts pressure on other EV startups, possibly leading to a positive short-term impact on Tesla's stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
NEGATIVE IMPACT
Fisker Inc. is part of the group of EV startups that may exhaust their cash reserves by the end of 2024, with its stock price already severely impacted.
Fisker Inc. is explicitly mentioned as facing a risk of cash depletion and has experienced a significant decline in its stock price, indicating a negative short-term impact on the stock.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Nikola Corp. is among the EV startups facing cash flow issues, with a significant drop in stock price and potential cash depletion by 2024.
The news directly mentions Nikola Corp. as one of the companies with significant cash flow issues and a substantial drop in stock price, which is likely to negatively impact investor sentiment and the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Romeo Power has been sold at a lower valuation, indicating financial struggles that could affect investor confidence and its stock price.
Romeo Power's sale at a lower valuation is a sign of financial difficulties, which could lead to a negative perception among investors and further downward pressure on the stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Volta has been sold at a significantly lower valuation, reflecting the company's financial distress and potential negative impact on its stock.
The sale of Volta at a lower valuation suggests financial issues that could lead to decreased investor confidence and a negative short-term impact on the stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80