Elon Musk Says Tesla’s Competitors Are About To Go Bankrupt
Tesla CEO Elon Musk says that the company’s electric vehicle competitors, Rivian and Lucid, are on their way to bankruptcy if nothing changes.
Musk, who was speaking during an interview at the Tesla Silicon Valley Owners Club, said that both companies are tracking towards bankruptcy and will struggle if they don’t find a way to cut costs. There’s a matter for debate as to whether Musk was saying what a group of his company’s most ardent fans probably want to hear, however.
Electrek reports that the founder said that “unless something changes significantly with Rivian and Lucid, they will both go bankrupt. They are tracking toward bankruptcy.”
Musk want on to say that he hoped something would change, but if not Tesla and Ford would be the last ones standing.
I hope they can do something, but unless they can cut their cost dramatically, they are in deep trouble and will end up in the car cemetery like every other with the exception of Tesla and Ford.
Rivian in particular has been losing money hand over fist. The company, having just launched its first car, lost $1.5 billion last quarter and Musk says that he has one bit of advice – “cut costs immediately across the board.”
Tesla of course also lost plenty of money in its lifetime, especially at the beginning of its journey. Both Rivian and Lucid are much younger than Tesla and still need to make the moves Tesla has already navigated.
Cynics would suggest that this latest volley is nothing more than Musk trying to ratchet up the pressure on the competition, while others would say he should concentrate on finding a way for his company to meet demand. Ordering a new Tesla today will see delivery next year for many EVs.