Rivian And Lucid Show That Wealthy Backers Are The Only Chance For Survival Of EV-Only Companies
Portfolio Pulse from Upwallstreet
The latest earnings reports from Rivian and Lucid highlight the struggles of pure play EV makers and the importance of wealthy backers for their survival. Rivian benefits from a $5 billion joint venture with Volkswagen, while Lucid is supported by Saudi Arabia’s Public Investment Fund. Both companies are working on new models to attract customers. Worksport is also expanding its market presence with innovative products for electric pickups.
August 08, 2024 | 7:32 pm
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Lucid's Q2 earnings report shows a net loss of $643 million, slightly better than last year. The company secured an additional $1.5 billion from its majority shareholder, Saudi Arabia’s Public Investment Fund, extending its lifespan.
The additional funding from Saudi Arabia’s Public Investment Fund provides Lucid with the necessary capital to continue operations and work on new models.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 100
POSITIVE IMPACT
Rivian's latest earnings report shows a significant cash burn but highlights the benefits of its $5 billion joint venture with Volkswagen. The partnership is expected to help Rivian scale and reduce costs, aiming for a positive gross margin by the end of 2024.
The partnership with Volkswagen provides Rivian with significant advantages in scaling and cost reduction, which are crucial for its survival and potential profitability.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Worksport is expanding its market presence with the launch of its solar-powered tonneau cover SOLIS and portable battery system COR. The company aims to enhance the range of electric pickups and provide off-grid power solutions.
Worksport's innovative products could attract significant interest from electric pickup manufacturers and consumers, potentially boosting its market presence.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70