Musk compared Rivian and Lucid to a falling plane

Musk compared Rivian and Lucid to a falling plane 1

Tesla CEO Elon Musk is confident that Rivian and Lucid startups will soon go bankrupt if the situation does not radically change.

The billionaire met with the owners of Tesla at the Gigafactory Texas plant and made several harsh statements about the two most popular startups in the United States. He compared Rivian and Lucid to a falling plane and added that they need to significantly reduce costs in order to survive.

But let’s give the floor to the Mask itself:

“I hope that they will be able to do something, but if there are no drastic cost cuts, then they will have big problems, and they will end up in the automotive graveyard, like everyone else, except for Tesla and Ford.”

It’s funny, but Musk really believes that only Tesla and Ford will survive in the electric car world. And even if we assume that we are talking exclusively about American automakers, then exclude GM and Stellantis (represented by Chrysler, Jeep, and Dodge) from the electric race it’s a little early, at least.

During the discussion, the Tesla boss also commented on the price increase for Rivian models earlier this year. He noted that such a rapid increase in the price leads to an equally rapid decline in demand for products.

Rivian really loses money on every electric car coming off the assembly line. At the same time, many industry analysts and executives of competing companies disagree with Musk, believing that the prices for R1T and R1S are still artificially low, and even recommend reviewing the pricing policy.

The situation with Lucid is somewhat different, because Air electric sedans were positioned as premium from the very beginning and asked for them decently, so it will be much easier for them to get out of the crisis. However, the startup has other problems. For example, at the end of last month, it became known about the global recall of all brand cars due to wiring issues.

Source: Electrek