upcomingplaytoearncryptogames| Multiple unfavorable factors are striking, and the new force in building cars in the United States is facing a "moment of life and death"

phmaya
2024-05-17

Looking back at the cash-rich car-building new forces trying to turn cash and flow into sales between 2020 and 2021, their funds are running out, coupled with slowing demand for electric cars and accelerated entry by traditional carmakers, some of the weak car-building new forces have fallen, and there may be more "losers" in the future.

Currently, Lordstown Motors and Arrival have filed for bankruptcy; Fisker is still trying to renew its life; Rivian and Lucid are relatively safe, but first-quarter losses totaled more than $2.1 billion. "UpcomingplaytoearncryptogamesWhat we are seeing is not the integration of new forces in car building, but the demise of a new biological species, "Robert Fisher said."

Tesla's counterattack has spawned a large number of followers, from a start-up on the verge of bankruptcy to becoming the world's most valuable carmaker, Automotive News reported. During the period from 2020 to 2021, a number of new car-building forces in the United States went public through mergers with special-purpose acquisitions.

However, the development of the new car-building forces is not smooth, and some of them go bankrupt after burning a lot of money; when the companies that are still sticking to it will make a profit is full of uncertainty. Among them, Lordstown Motors and Arrival have filed for bankruptcy; Fisker is still trying to renew their lives; Rivian and Lucid are relatively safe, but their first-quarter losses totaled more than $2.1 billion.

"what we are seeing is not the integration of new forces in car building, but the demise of a new biological species," said Robert Fisher, head of electric vehicles at SBD Automotive, an automotive research and consultancy.

Ideal and reality

As representatives of the new power of car building in the United States, Nikola, Lordstown Motors, Canoo, Fisker and Lucid have all promised lightning speed of product development and Tesla-style success.UpcomingplaytoearncryptogamesThey believe that, in accordance with the previous plan, they should be able to grow their own size rapidly.

However, "No one could have imagined that the journey to achieve this goal would be so difficult." Needham & CoUpcomingplaytoearncryptogames. Analyst Chris Chris Pierce said.

Since last year, new car-building forces have been forced to accept the pursuit of "cost-effective", and even Tesla has had to cut prices sharply to cope with the cooling demand for electric vehicles. Carlos Tavares, chief executive of Stellantis Group, warned that traditional carmakers had begun to seriously consider producing electric cars and that there could be a "bottom-to-bottom competition" in the car industry.

Lucid, for example, forecasts annual car delivery of 90, 000 vehicles in 2021 and revenue of $9.9 billion, but in its most recent financial report, Lucid said it could only produce 9000 cars this year. The good news is that Lucid lost 6% in the first quarter of this year.UpcomingplaytoearncryptogamesRevenue rose 16 percent to $173 million, down from $780 million in the same period last year.

"importantly, too many things have happened since 2021, including the worst supply chain disruptions in history, macroeconomic downturns and rising interest rates. "like many companies, Lucid is affected by uncontrollable factors," said Jesse Caputo, a spokesman for Lucid.

Bankruptcy and struggle

So far, some of the new car-building forces have declared bankruptcy. In February, Arrival, the British electric carmaker, filed for bankruptcy protection by selling assets to Canoo, another start-up. Canoo lost $110.7 million in the first quarter of this year and last month said it had "serious doubts" about whether it could continue to operate.

Even the new power of car building, which has filed for bankruptcy, may still face a lot of trouble. Lordstown Motors, which filed for bankruptcy last year, for example, was still accused by the Securities and Exchange Commission (SEC) in February of exaggerating demand for Endurance electric pickups.

In addition, there are also new car-building forces struggling on the brink of life and death. In February, Fisker issued a warning of continued operation, and Magna, its manufacturer, said in its first-quarter results that it "assumes that Fisk Ocean is no longer producing".

The manufacturer's Mullen Automotive of cars carried out three reverse stock splits in 2023, merging existing shares to raise the share price, but this did not increase the overall value of the company. This month, Mullen Automotive expressed "serious doubts" about whether it could continue to operate.

"this is the market economy," said David Michery, chief executive of Mullen Automotive. "every new force in car building has its own difficulties, including Tesla." In the first quarter of this year, Tesla's profits hit a six-year low and were forced to cut prices to boost sales, but inventories still rose to 28 days from 15 days in the previous quarter.

Opportunity and Future

Of course, even if the economy slows, there will be good news for the industry as a whole. In March, Lucid raised $1 billion from a subsidiary of the Saudi Public Investment Fund; Canoo recently signed a car sales agreement with a paint manufacturer; and Mullen Automotive announced a $150 million financing commitment this month.

But while some of the new car-building powers are trying to find room for survival, traditional carmakers are also on their own. At present, traditional carmakers are accelerating the introduction of electric vehicles, with brand recognition, mature services and after-sales networks, as well as good cash flow.

Tesla's share of the US electric car market was slightly more than 51 per cent in the first quarter of this year, down from more than 60 per cent in the same period last year, according to Kelly Blue Book. "the electric cars launched by traditional carmakers make it difficult for the new forces to build cars, and they have more attractive products." Pierce said.

"at the beginning of its establishment, Auto New trend wanted to be the next Tesla," said Adam Adam Jonas, an analyst at Morgan Stanley, but it turned out to be a costly strategy. (Jiang Zhiwen, China Economic Network / translation)