Rivian Automotive Inc. and Lucid Group Inc., two US companies that are losing money, are finding it increasingly harder to establish themselves in a market that is competing for consumers’ dwindling disposable income due to a pricing war in electric vehicles that was triggered by market leader Tesla Inc.
The industry may see more buyers as a result of Tesla’s plan to drop global EV pricing by up to 20% last week, but experts and investors also believe that other automakers will be forced to respond with lower prices or risk falling behind. Due to the rising costs of raw materials and production in addition to their much smaller output than Elon Musk’s Tesla, which shipped over 1.3 million vehicles last year, some companies may not be able to afford reduced prices.
