News on February 24th is as ruthless as ever in the world of business. Only those who succeed truly have a say.
Recently, the American electric vehicle startups Rivian and Lucid announced their financial reports for the fourth quarter and full year of 2023. As longtime rivals of Tesla, they naturally caught Elon Musk's attention, and his commentary was rather sharp.
Regarding Rivian, Musk stated, "Their product design isn't bad, but what truly makes it difficult for a car company to turn a profit is achieving large-scale production and positive cash flow."
He predicted that if Rivian doesn't significantly cut costs, the company will run out of funds in about six quarters. Furthermore, he mentioned that Rivian executives need to "live at the factory, or they will die."
The financial report shows that while Rivian's total revenue for 2023 was $4.434 billion (approximately ¥31.896 billion), a 167.4% increase compared to 2022, the company has actually been consistently losing money. In 2023 alone, it lost a total of $5.432 billion (approximately ¥39.076 billion).
It's worth noting that the company recently announced a decision to lay off 10% of its workforce, marking the third and largest layoff since its inception.
In contrast, Lucid's situation is even more challenging. The latest financial report shows that the company plans to produce only 9,000 cars in 2024, just 500 more than its production guidance for 2023.
It is reported that Lucid also has a factory in Saudi Arabia, owned by a subsidiary of the country's sovereign wealth fund. Musk bluntly stated, "The Saudi oligarch is the only factor keeping them alive."
