Elon Musk says that Lucid and Rivian are tracking toward bankruptcy...

[rbbarry]

Elon Musk says that Lucid and Rivian are tracking toward bankruptcy

Elon Musk says that electric vehicle startups Lucid and Rivian are tracking toward bankruptcy unless something changes. During an interview...

electrek.co

 

[joec]

Elon Musk says that Lucid and Rivian are tracking toward bankruptcy

Elon Musk says that electric vehicle startups Lucid and Rivian are tracking toward bankruptcy unless something changes. During an interview...

electrek.co

Good sign for both companies. It means Elon is still afraid of the competition.

 

[HC_79]

Elon was quite vocal when others kept saying Tesla was doomed and was quite frustrated over the comments. Now Tesla is a success he's become exactly the same person/company that were making comments when Tesla was going through it's growth phases. Tesla was weeks away from bankruptcy and pulled through so maybe he should be supportive of the new players instead of trying to doom them.

Interesting that this comes out when he's had weeks of scrutiny. His Twitter deal is a debacle, his "get back to the office or be fired" hasn't gone down too well, his "bad feeling" about the market and cutting 10% of the workforce and now the NHSTA probe saying autopilot disengages 1 sec before crashing. The share price has tanked and now it seems they're going to have a bad quarter. Someones ego may be getting a little bruised because things aren't going his way of late.

 

[joec]

Elon was quite vocal when others kept saying Tesla was doomed and was quite frustrated over the comments. Now Tesla is a success he's become exactly the same person/company that were making comments when Tesla was going through it's growth phases. Tesla was weeks away from bankruptcy and pulled through so maybe he should be supportive of the new players instead of trying to doom them.

Interesting that this comes out when he's had weeks of scrutiny. His Twitter deal is a debacle, his "get back to the office or be fired" hasn't gone down too well, his "bad feeling" about the market and cutting 10% of the workforce and now the NHSTA probe saying autopilot disengages 1 sec before crashing. The share price has tanked and now it seems they're going to have a bad quarter. Someones ego may be getting a little bruised because things aren't going his way of late.

Particularly because when he started Tesla, the stated goal was to end ICE cars. Period. He often stated that if all Tesla accomplished was to get the major auto manufacturers to make electric cars instead of gas cars, he'd consider that success.

So why does that suddenly not apply to new automakers? Well, we know the answer to that.

 

[CLTGT]

Technically, every Company that is not cashflow positive is "tracking towards bankruptcy", just a matter of how long it takes to get there or turn it around.

 

[stratus]

Classic narcissistic move to manipulate the market. Perhaps he should focus on Twitter.

 

[HC_79]

Classic narcissistic move to manipulate the market. Perhaps he should focus on Twitter.

Exactly!

 

[Drendino]

This reminds me of the time in middle school when I told all of my friends how ugly Suzie Johnson was. I was definitely not into Suzie Johnson! In fact, after 40 years I barely ever think about Suzie Johnson!

 

[stratus]

In all honesty, collectively we are taking a chance buying a brand new product , whose future is not certain. I often get a bit of trepidation thinking about the whole thing. It is comments like Musk’s that make me even more enthusiastic about the vehicle.
They have plenty of financial backing, expertise , and a killer car. It will be an interesting few years for early adopters. I really hope we all made a great decision.

 

[Slam08]

Interesting that this comes out when he's had weeks of scrutiny. His Twitter deal is a debacle, his "get back to the office or be fired" hasn't gone down too well, his "bad feeling" about the market and cutting 10% of the workforce and now the NHSTA probe saying autopilot disengages 1 sec before crashing. The share price has tanked and now it seems they're going to have a bad quarter. Someones ego may be getting a little bruised because things aren't going his way of late.

What also interesting is that none of that matters. Tesla stock always goes up! Who said the stock market was rooted in fundamentals? Lol

 

[joec]

What also interesting is that none of that matters. Tesla stock always goes up! Who said the stock market was rooted in fundamentals? Lol

“Too big to fail” all over again. Enough wealthy people are so heavily invested in Tesla at this point they’ll do anything to keep propping it up.

But that always ends badly. Eventually. The only question is when.

 

[Bunnylebowski]

Classic narcissistic move to manipulate the market. Perhaps he should focus on Twitter.

He should also smoke less weed and do less Ketamine.

 

[stratus]

This reminds me of the time in middle school when I told all of my friends how ugly Suzie Johnson was. I was definitely not into Suzie Johnson! In fact, after 40 years I barely ever think about Suzie

He should also smoke less weed and do less Ketamine.

I need to do some Ketamine . I have been feeling anxious lately, especially after reading Musk’s constant stream of excrement. There must be a clinic nearby!!

 

[Slam08]

Classic narcissistic move to manipulate the market. Perhaps he should focus on Twitter.

I wish I was musk. I could buy a stock then tweet something good about it and watch the price go up. Then sell it. Then short some other stock, tweet something negative about it and watch it go down. Rinse, repeat. People are like lemmings sometimes.

 

[MikeTz]

When was this video taken? Before the IPOs?

 

[stratus]

I wish I was musk. I could buy a stock then tweet something good about it and watch the price go up. Then sell it. Then short some other stock, tweet something negative about it and watch it go down. Rinse, repeat. People are like lemmings sometimes.

Yup

 

[Bus Driver]

Adding absolutely nothing useful or constructive to the proceedings - who cares what this guy thinks? He was always the schumck that I suspected he was, it’s just that we’re all finding out about it now.

Elon Musk should keep his mouth shut.

 

[Parachute Adams]

Technically, every Company that is not cashflow positive is "tracking towards bankruptcy", just a matter of how long it takes to get there or turn it around.

Pretty much right---and I don't see the personal attacks on Musk as shedding any light on the important issues here. Nor do the comparisons to Tesla 10 years ago; it's a different paradigm today, bec broader acceptance of the EV proposition, expanded tax benefits, battery efficiency, charging infra, etc, etc create an exponentially more fertile marketplace than Tesla faced in the beginning.

I think Musk's BK prediction for Rivian is likely wrong bec of their $16B cash reserve. But god knows that will evaporate in a heartbeat if they don't turbocharger revenues (i.e mass produce the damn trucks). By any measure the "promise" to buyers and investors alike has so far been unmet.

Re. Lucid, I also think the BK prediction is wrong, but only because of the Saudi sponsorship. Lucid has only about $5B in reserve and it's stock price is near all-time low. They have failed badly to mass-produce, and what they do produce is unusually faulty and warranty prone. The management team should be on the hot seat.

Re bankruptcy (Musk's thesis) it certainly doesnt mean the liquidation of the business (been there/done that). Rivian has successfully established a new brand, has a great product and a huge backlog. Before BK (which would damage the brand) vulture capital will see value, put in new $, and cram down the shareholder, IMO. The business will go on with new ownership and real professional management that knows how to mass produce in the automotive space.

Re. Lucid (IMHO) market acceptance of the product is much less clear...we've been hearing 30,000 orders for about 6 months. If it were steadily growing wouldn't they announce it? Leading with a $150K product was a gamble--yes, Tesla did the equivalent, but so what? Those people have already bought. In the current state of the equity markets--and LCID's production performance-- they can't access outside equity capital. With rates rising and debt underwriting tightening, it's hard to go to public debt markets. So absent the Saudis, Musk is likely right about BK. But the Saudis have tipped their hand: sure, they're in it for the IRR that drives all their investments. But they've showcased LCID with the big factory there, and the spin that they're diversifying out of oil/gas. I'm guessing they're too far in now to admit defeat--as long as it's clear the product has acceptance broad enough to scale, the company can actually produce at scale, and they can roll out new products to justify the huge infrastructure spends.

Sorry if i sound like a downer--I love theAir looks, I'm emboldened by the descriptions here of driving characteristics, and really want the company's business climate to be such that I feel safe buying. Right now it isn't for me...but watching and hoping

 

[Ksa23]

This coming from the same guy who railed against the idea of government subsidies for emerging tech, yet Tesla/spaceX only exists because of them? Irrelevant opinion.

 

[HC_79]

I agree that without the Saudi money, Lucid would probably be in serious trouble. They’re spending money on building a plant in Saudi Arabia while they can’t even get the existing plant issues resolved. I know a lot of the money is coming from the PIF and subsidies but how much is Lucid prioritizing to keep the Saudis happy vs focusing on getting production ramped up in the US. The AMP-1 expansion is ridiculous at this point in time. They can’t even get a few hundred cars out a quarter let alone the 30K+ the current line can build a year. Yet even before getting that line operational they throw money at expanding the plant to 90K+ cars a year when they can’t seem to get over 30K orders. The excuse for the expansion was for the Gravity but surprise, surprise that got pushed to 2024 so they’ll have this massive plant with very little orders coming in……

Management needs a good kick up the ass. These people are seasoned people from the industry and can’t get things moving. Supply chain constraints aside there have been QC issues from day 1 so again, what on earth were they doing during pre production? Maybe there is a reason these people aren’t at Audi, Tesla, etc. anymore because they couldn’t make the cut at those companies so thought they could do better elsewhere.

As an owner, a shareholder and wanting the company to succeed I’m becoming extremely frustrated with Lucids efforts to get things right. At this point in time, everyone is probably laughing at them and will never see them as a threat. They took a great platform and have potentially killed it because management just can’t get it right.

Elon is a troll but Lucid played right into his hand. Peter’s comments about doing it better and focusing on quality have bit him in the ass big time! Instead of owning up to the mess he’s created he stays quiet and does videos in his spare time on how good the car is.

I feel Lucid has a very small window to succeed and as each day goes by that window is closing. Q2 earnings are going to be brutal and all we’ll hear from Peter is “things are great” and have controlled questions for him to answer.