EV Startups Brace for Another Tough Year as Cash Dwindles
For many of the electric-vehicle startups, last year was rife with supply-chain constraints and manufacturing troubles that hindered their efforts to get off to a fast start.
Now, young companies such as Rivian Automotive Inc. and Lucid Group Inc. are facing a more pressing challenge this year: They need to right their factory operations before running through their cash reserves.
The earnings results over the past few weeks for these EV makers illustrated the urgency of their predicament. While these companies are now producing vehicles, losses continue to mount as they have struggled to spool up assembly lines and boost sales as planned, whittling down their financial cushions and increasing the likelihood of needing to raise more money.