Regarding Tesla Vs Rivian And Lucid, Elon Musk: They Bankrupt Soon

The long journey of Tesla's electric car. (Doc. Tesla)

JAKARTA - Tesla has been the market leader of purely global electric vehicles in recent years. Behind Tesla is a BYD from China who is ready to overtake by continuing to overshadow Tesla, especially in the last three years.

Tesla has clearly passed a steep long road and is not easy to achieve profitability and dominance in the realm of electric vehicles today. However, what is certain is that competition in the EV industry is still far from over, and the future of its players is still full of uncertainty.

Then what is the competition between Tesla and other electric vehicle manufacturers, namely Rivian and Lucid?

Elon Musk, CEO of Tesla boasted that his competitors such as Rivian and Lucid, would not have the same fate as Tesla.

He made this statement through his personal social media platform, X, on February 22.

Current trajectory has them bankrupt in ~6 quarters. Maybe that trajectory will change, but so far it hasn’t. pic.twitter.com/tNNijQ3KwT

— Elon Musk (@elonmusk) February 22, 2024

Current trajectory has them bankrupt in ~6 quarters. Maybe that trajectory will change, but so far it Hasn't. pic.twitter.com/tNNijQ3KwT

However, Musk boasted that based on the financial statements of his two rivals for the fourth quarter of 2023, Musk bluntly expressed his views on Rivian and Lucid, and how long they could stay in the industry.

The forecast? Not very optimistic. Musk predicts these two companies have the potential to go bankrupt and end operations, which will clearly further strengthen Tesla's dominance in the EV industry in the United States.

It is known, Rivian and Lucid are two pure EV players who continue to struggle in the midst of difficult economic conditions and a challenging period of growth.

Reported by Teslarati, February 22, Rivian and Tesla have several similarities. Both contribute to the EV movement with a focus on expanding product lines, offering cheaper vehicles, and building strong "brands", in particular to attract those who want to support companies that are persistent in advancing EVs.

Despite experiencing a fluctuating past, including lawsuits for recruiting employees, Tesla and Rivian are widely considered as the two best EV companies in the United States. In fact, it seems that there is mutual respect between the two.

However, Rivian is still sailing in the bumpy waters. They are increasing production and trying to achieve profitability as quickly as possible. In their financial report, Rivian admits that they still lose money to every car produced, which is common for startups.

According to Musk's data analysis, Rivian is estimated to have only about six quarters left before bankruptcy became an unavoidable choice. According to Musk, Rivian's problem is not their product.

"The design of their products is not bad," Musk said, "but the hardest part of running car companies is achieving large volume production with positive cash flow," he added.

Lucid: A Different Story

Other Rivian, also Lucid. The relationship between Lucid and Tesla, especially with Lucid CEO/CTO, Peter Rawlinson, is colored with a different tone. Musk openly criticized Rawlinson for leaving Tesla when things became difficult, and it seems that the grudge is still imprinted today.

Lucid's current survival relies mostly on strong support from the Saudi Arabian Public Investment Fund (PIF). PIF is the reason why Lucid built production facilities in Saudi Arabia and produced cars for several government organizations there.

Musk cynically pointed to PIF's involvement as the main factor in Lucid's survival.

Their Saudi sugar daddy is the only thing keeping them alive

— Elon Musk (@elonmusk) February 22, 2024

Their Saudi sugar dad is the only thing keeping them alive

"Lucid can only survive because there is Saudi Dady's sugar," Musk concluded.