Tesla’s CEO, Elon Musk, chimed in with his opinion about the fate of Lucid and Rivian, two electric vehicle start-ups that have lost significant money. Elon Musk states that these two companies are on their way to bankruptcy because, in their first few years, they have lost over $1.5 billion. It is uncertain, though, how this decrease is affecting the company.
While Elon Musk has a point, there is more than what meets the eye with these companies. For instance, Lucid and Rivian are still in their first few stages of growth; there is no telling how far they will expand or how large they will thrive. Instead of producing as many electric vehicles as possible to increase the market, these start-ups focus on reducing manufacturing and production costs.
It is not wholly fair for Elon Musk to make this statement in a negative tone, especially since the first year of Tesla fared similarly. Electric vehicles are growing in popularity, but they are still not yet the preference amongst drivers. There are many people who believe in these small start-up companies as well, meaning they have support. One clear example of this is that Rivian has about $16 billion in cash; a loss of $1.5 billion is not enough to discourage them.
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