Elon Musk warns competitors Rivian and Lucid: It’s not as easy as you think

Elon Musk warns competitors Rivian and Lucid: It's not as easy as you think

The electric car scene is growing. New companies such as Lucid Motors and Rivian Automotive are expected to send their first production cars to customers soon. Lucid is already listed on the stock exchange and Rivian is set to be listed on the stock exchange at a rather impressive price.

“Can an electric car company be created without cars being delivered and valued at less than a billion dollars!”

In response to Tesla tweeter Warren Redlich, Elon Musk has provided good tips and warnings for newcomers to the electric car market. Redlich posted an image confirming that La Lucid and Rivian had delivered no more than one legitimate production vehicle to customers. That’s in stark contrast to Tesla, which delivered 1,400 roadsters when it was introduced to the public on June 29, 2010 and priced at $17 a ton. a job.

Rivian: nearly 700 billion kroner

Rivian revealed that the company aims to be valuing around $80 billion when it goes public. This is a significant amount considering that the only vehicle delivered was the R1T truck and went exclusively to company employees. According to Bloomberg, Rivian will focus on its R1T electric truck this year, indicating a very conservative strategy in the near future.

Lucid is in the same boat as the company went public without first offering the luxury sedan. So far, Lucid has stated that they expect to begin shipments of the Air by the end of October, but according to Forbes magazine, they have no plans to produce more than 577 Air in 2021.

See also  New electric impeller | Competitor calls for more inspections after fires

He must bear the pain

Elon Musk commented on Lucid and Rivian’s valuation and added, “Is it possible to start an electric car company without delivering cars and get a valuation for less than a billion dollars!” In a subsequent tweet, Musk hopes that new entrants into the electric car market have a high pain threshold because scaling production, supply chain management, logistics and services is a “painful world.”

Heavy road to mass production

This isn’t the first time Elon Musk has warned of the challenges of mass production. During the accounts presentation for the second quarter of this year, Musk reiterated these ideas when he described how difficult it would be to increase battery cell production. It was very easy to produce it in prototype form, Musk said, but scaling production to a meaningful level is another matter entirely.

Limited production is simple, prototype production is simple, but mass production is difficult. There are a number of challenges in the transition from small production to large production.

Elon Musk

Tesla rose 21,853 percent

Tesla delivered about a quarter of a million vehicles in the third quarter of this year, which corresponds to about half of the company’s deliveries throughout 2020. Success with a production facility in China has injected new optimism into the company and was noted in the exchange that sent the share price in the direction of outer space. Since the start of 2020, Tesla’s stock price has gone up an astonishing 880%. Since the first listing, the stock is up 21,853 percent based on Friday’s closing prices. This gives Tesla a market value of $834 billion, more than seven trillion kroner.

See also  Ice Group is considering raising NOK 2.5 billion to fund a new strategic plan and resolve a dispute between lenders

Hanisi Anenih

Hanisi Anenih

"Web specialist. Lifelong zombie maven. Coffee ninja. Hipster-friendly analyst."

Leave a Reply

Your email address will not be published. Required fields are marked *