Elon Musk said Lucid Motors and Rivian will go bankrupt
Elon Musk tweets targetting two electric vehicle startup companies Lucid Motors and Rivian stating that they would go bankrupt unless they change something.
If they cut their opex & cogs dramatically, then they have a chance, but that hasn’t happened yet
— Elon Musk (@elonmusk) June 14, 2022
Tesla CEO Elon Musk says during an interview, “Unless something changes significantly with Rivian and Lucid, they will both go bankrupt. They are tracking towards bankruptcy,” he also added, “I hope they can do something, but unless they can cut their cost dramatically, they are in deep trouble and will end up in the car cemetery like every other with the exception of Tesla and Ford.”
It has been reported that Rivian has increased the prices of its electric vehicles earlier this year to that Musk has commented, “reduce the number of people who can afford the vehicles exponentially.”
According to several reports, Rivian has lost $1.5 billion with a significant negative gross margin, Lucid is also facing a similar situation. However, Tesla was also losing money around the same time. But Tesla has decided to take a different approach by raising capital before it got its costs under control.