- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Do EV companies like Rivian or Lucid have a gameplan to cut costs?
Posted on 12/30/24 at 7:58 pm
Posted on 12/30/24 at 7:58 pm
I'm sure these companies could make you a good profit if you got in today and they somehow figured out a damn way to make profit but their financials are horrible. Lucid particularly. $200 mil in Revenue, $1.2 bil in opex, losing a bil last quarter. How do you even come back from something like that? Why was Elon successful in it? Rivian at least does a bil a quarter in revenue, but quarterly revenue is down 30% since Q1 2024. It also loses $1 bil in net income a quarter.
What's the concept here? That they just sell a shite ton down the road to get opex per unit down? Just seems like a company that won't ever profit unless they have 5%+ of the entire car market to themselves each.
Hilarious how these companies bring in under 2% of the revenue that Ford gets per year, yet they are worth 25-33% of Ford each. That's a 12-17x premium over Nati for just being an EV.
I at least get the Quantum multiples because it does seem like it could be a huge market with software/AWS/AI type net income margins, but Rivian and Lucid seem they are Mt Himalaya away from ever turning a profit.
What's the concept here? That they just sell a shite ton down the road to get opex per unit down? Just seems like a company that won't ever profit unless they have 5%+ of the entire car market to themselves each.
Hilarious how these companies bring in under 2% of the revenue that Ford gets per year, yet they are worth 25-33% of Ford each. That's a 12-17x premium over Nati for just being an EV.
I at least get the Quantum multiples because it does seem like it could be a huge market with software/AWS/AI type net income margins, but Rivian and Lucid seem they are Mt Himalaya away from ever turning a profit.
This post was edited on 12/30/24 at 8:05 pm
9
Posted on 12/30/24 at 8:19 pm to Saunson69
Lucid is backed by saudi so until that changes they have a practically unlimited money supply
Posted on 12/30/24 at 8:21 pm to Saunson69
quote:
How do you even come back from something like that? Why was Elon successful in it?
Building a car company from scratch with manufacturing is extremely capital intensive.
Elon had first mover advantage but people seem to forget most never thought he would ever turn a profit. Tesla was not even profitable from selling cars until very recently. Tesla was the benefactor of selling billions of regulatory credits to other car companies who had not made any transition to making electric vehicles yet. That window obviously has closed for new entrants into the space. Also like the new deal rivian received, Tesla took almost 500 million from the government to help build is it's manufacturing base.
Due to the costs of starting alone not sure anyone makes it without some sort of help.
I think lucid doesn't seem to be a on strong position yet.. Rivian sales are stronger and was able to get the loan from the US government to help build it's manufacturing plant in Georgia.. They have to keep their plants in the USA though unlike Tesla which transitioned to China very quickly
Posted on 12/30/24 at 8:40 pm to Saunson69
(no message)
This post was edited on 1/25/25 at 12:07 pm
Posted on 12/30/24 at 10:29 pm to Saunson69
Elon also had a metric crap ton of government subsidies to help him along from 2012 to basically now. I remember they knocked about 30k off a Tesla three early on.
Posted on 12/31/24 at 12:32 am to Saunson69
I think in a nutshell they just need to be able to sell a ton of cars to spread the capex out.
But will require more capex to do so.
Tough spot for a company tight on cash.
But will require more capex to do so.
Tough spot for a company tight on cash.
Posted on 12/31/24 at 7:14 am to Saunson69
quote:
cut costs?
quote:
EV companies
Why would taxpayer funded boondoggles need to cut costs?
Posted on 12/31/24 at 7:18 am to Saunson69
In theory the batteries and the components of those batteries should become cheaper over time because companies will emerge that compete on that front and make them cheaper + more efficient.
Could take a LONG time though.
Could take a LONG time though.
Posted on 12/31/24 at 10:26 am to VolSquatch
(no message)
This post was edited on 1/25/25 at 12:06 pm
Posted on 12/31/24 at 11:49 am to lsuconnman
quote:
We’re at a point where every device with a battery is simply discarded as soon as it loses a charge.
That seems wasteful. I can't remember the last product that wasn't a cellphone that I got rid of for battery issues.
Posted on 12/31/24 at 1:20 pm to Saunson69
quote:
Elon
You mean Kekius Maximus
Posted on 12/31/24 at 4:24 pm to VolSquatch
(no message)
This post was edited on 1/25/25 at 12:06 pm
Posted on 1/2/25 at 10:27 am to Saunson69
Cap ex up front is tremendous.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News