Musk: Lucid and Rivian are heading for bankruptcy

According to foreign media reports, Tesla CEO Elon Musk said in an interview with the Tesla Silicon Valley Owners Club (Tesla Silicon Valley Owners Club) that USelectric carstartups Lucid and Rivian have both gone bankrupt. trend."Unless Rivian and Lucid make big changes, they're both going to go bankrupt. They're heading for bankruptcy."

Musk added, "I hope they do something, but unless they can cut costs drastically, they're going to be in deep trouble and end up in the car cemetery like everyone else except Tesla and Ford. I Rivian is advised to cut costs across the board immediately."

He also commented on Rivian's move to raise the price of electric vehicles earlier this year, noting that when you raise the price, "there are exponentially fewer people who can afford your car."

Image source: Tesla Silicon Valley Owners Club Twitter

Foreign media Electrek believes that Musk’s remarks are right a nd adds some factual details.Rivian lost $1.5 billion last quarter with negative gross margins.If Rivian continues to lose money selling and delivering EVs, it could face bankruptcy unless Rivian can raise more money.Lucid has a similar situation.

Tesla faced a similar situation around the same stage.At the time, Tesla had been losing money and relied on raising more money for a long time to keep costs in check.

However, Tesla is quite different from Rivian and Lucid.First, the big difference is that Rivian and Lucid were bigger than Tesla at the time.As Tesla delivers thousands of vehicles each quarter, Rivian has achieved positive gross margins, although it is still losing money overall.Rivian is losing money on every vehicle it delivers, and if Rivian can't cut costs by scaling up and cutting production costs, it's likely to go bankrupt.

Another difference is that at the end of last quarter, Rivian had more than $16 billion in cash on hand to cover expenses.But Musk believes that Rivian is on the verge of bankruptcy and needs to make some changes, but Rivian is no different from Tesla five years ago.

Both Lucid and Rivian have good products and are focusing on improving the quality of those products while reducing costs.However, foreign media Electrek believes that Musk's "doomsday" remarks are very similar to those who were not optimistic about Tesla.