Category: fisker

May 16

Are EV Startups in Trouble? 1 Company Is Unlikely to Survive the Year

Last year, EV automakers couldn’t get anything wrong, but that success hasn’t transitioned to 2024. Automakers focused solely on electric vehicles had a rough first quarter, meaning four top names, Tesla, Lucid, Fisker, and Rivian, have to address challenges to turn things around. How are these EV startups addressing serious challenges? Let’s find out.

Let’s start with Tesla

It seems that Tesla sets the tone for the electric vehicle world, which makes this brand a good place to start. Tesla is the oldest of these EV startups and chose to lay off workers to address the first quarter losses. Unfortunately, firing the entire charging team wasn’t the smartest move, and Tesla has since begun rehiring them. The layoffs impacted other areas of Tesla, including engineering, service, and software groups. Cutting staff can be a double-edged sword, but it’s the direction Tesla CEO Elon Musk chose.

Blue Lucid Air Sapphire parked
Lucid Air Sapphire | Lucid

How is Lucid addressing its losses?

Lucid is a boutique-style EV startup, producing vehicles in small numbers. Lucid’s goal to build 9,000 cars this year might be in jeopardy after losing $685 million during the first quarter. This figure is better than the Q1 2023 losses of $780 million, and revenue is up to $173 million. Lucid intends to throw money at the problem and has $2.2 billion in cash to offset losses and continue forward.

Fisker Ocean parked in front of a home
Fisker Ocean | Fisker

Is Fisker done?

Fisker needs the EV market to be strong to survive. Currently, they only build the Ocean SUV, which might mean Fisker’s end. As one of the newest EV startups, this company was only just getting started when things slammed shut. The company could suffer $75 million in losses, which might be enough to cancel the contract with Magna International of Australia, which currently produces the Fisker Ocean. No more Ocean SUVs will be built, and Fisker doesn’t have another location to build them. Without a fiscal shot in the arm, Fisker may need to declare bankruptcy.

The 2024 Rivian R1T climbing over rocks
2024 Rivian R1T | Rivian

Rivian throws money at the problem

Rivian faced challenges last year and could be in a good position this year. Revenue is up $661 million, and deliveries are up 71% during the first quarter to 13,588 vehicles. With the new Rivian R2 on the horizon and potential partnerships with commercial companies, Rivian might be in a good position if its cash reserves remain. This company lost $5.4 billion in 2023 and another $1.45 billion during Q1 2024. The cash burn continues but might turn around for Rivian soon.

Will all four of these EV startups survive into the future? It doesn’t look like it, but three of them should remain for at least another year.

Aug 20

2023 Fisker Ocean Extreme vs. Tesla Model Y Performance: A Detailed Comparison

Overview of the 2023 Fisker Ocean Extreme

The 2023 Fisker Ocean Extreme is a notable addition to the all-electric SUV market, following its European debut. While it features a substantial 113-kilowatt-hour battery pack, translating to a commendable EPA combined range of 360 miles, its efficiency lags behind that of competitors like the Tesla Model Y Performance. The Fisker Ocean’s large battery and heavier build contribute to its robust range but result in an energy consumption rate of 92 MPGe, which could be improved.

Key Comparisons: Fisker Ocean Extreme vs. Tesla Model Y Performance

When compared to the Tesla Model Y Performance, the Fisker Ocean Extreme shows strengths and weaknesses. Despite having a larger battery and a slightly longer range, the Tesla Model Y Performance outshines the Fisker in terms of energy efficiency, weight, and acceleration. The Model Y’s lighter build and better efficiency make it a strong contender, offering a balance of performance and range that the Fisker Ocean Extreme struggles to match.

The Fisker Ocean Extreme stands out with its advanced features and generous range, but its higher weight and lower efficiency compared to the Tesla Model Y Performance might be a consideration for potential buyers. While the Ocean Extreme offers a larger battery and a comparable driving range, its overall performance and efficiency metrics highlight areas where it could improve to better compete in the electric SUV segment.