This week, Rivian Automotive, Inc. (NASDAQ:RIVN), Lucid Group, Inc. (NASDAQ:LCID), and Nikola Corporation (NASDAQ:NKLA) leaders outlined strategies to cut costs, expand operations, and achieve profitability.
These strategies involve various measures, including workforce reductions, production adjustments, supplier changes, and strategic realignments, CNBC reported.
Wall Street analysts describe the electric vehicle market as experiencing an “EV winter,” signaling a shift from “EV Euphoria.” However, some view it as a temporary setback, anticipating carmakers to overcome challenges for long-term success, CNBC added.
As EV adoption lags behind expectations, companies rush to market, investing billions for first-mover advantages in emerging segments.
“US EV adoption likely entered an air pocket after having penetrated initial adopters & specific regions,” Citi analyst Itay Michaeli wrote on a note, CNBC added. “The situation will not change overnight, but we see reason for optimism over the next 12-18 months.”
Rivian has undertaken extensive cost-cutting measures, including staff reductions and retooling its Illinois plant for efficiency. Additionally, it halted production at a new Georgia factory to manage expenses, the report stated.
“We have identified additional opportunities in cost of goods sold, and we’ll continue to focus on implementation and further areas for cost out. Longer term, our technology will be key driver of our gross margin,” Lucid CEO Peter Rawlinson said investors this week, CNBC reported.
In contrast to Rivian and Lucid, Nikola’s primary focus is on commercial vehicles rather than retail. CFO Thomas Okray emphasized the need to reduce costs while expanding sales, potentially by offering lower prices to large customers to increase scale. “We definitely need to optimize our cost structure. No question about it,” Okray told investors, CNBC added.
Price Action: RIVN shares are trading lower by 2.15% to $10 at last check Friday; NKLA shares are trading lower by 7.6% to $0.5318; LCID shares are trading lower by 2.23% to $2.64.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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