Published on 8 Apr 2024 on Zacks via Yahoo Finance

EV Stock Roundup: Q1 Deliveries of TSLA, NIO, XPEV, LI & RIVN in Focus

The electric vehicle (EV) frenzy, witnessed in 2020 and 2021, has lost its spark. Skepticism among investors is rising as EV startups tread on thin financial ice, facing the make-or-break challenge of proving their mettle in a fiercely competitive market. The industry’s capital-intensive nature is fast depleting the cash reserves of startups.

Last week, Canoo released its quarterly results and concurrently expressed doubts about its ability to continue as a going concern. The following day, Canoo revealed a significant development by securing a vehicle sales agreement with Jazeera Paints. The agreement entails the initial purchase of 20 Canoo EVs, with an option to expand the fleet by an additional 180 vehicles potentially.

Lucid Motors announced that it is raising another $1 billion from Saudi Arabia amid diminishing cash reserves. According to Peter Rawlinson, CEO of Lucid, the automaker is burning around $1 billion in cash per quarter. That makes us wonder if funding of $1 billion would prove to be sufficient for a company that is currently burning the same amount per quarter.