Emerging U.S. EV Makers on the Move
Several begin EV sales in 2023, following Rivian, Lucid Motors, and others
2024/04/02
- Summary
- Rivian’s mass production stands out; many companies continue in the red, operations at risk to end
- Rivian Automotive: Production of 57,000 units in 2023, up 135% year-over-year; sales surge but business losses continue
- Lucid Motors: Production increases, but losses also increase; investment expansion with Saudi Arabian capital
- VinFast: Over 3,000 units sold in the U.S. in 2023, where production is to begin in 2025
- Karma Automotive: First full BEV to be launched by the end of 2024
- Fisker: Production in 2023 about 10,000 units; delisting warning from NYSE as stock price plummets
- Nikola: EV semi-trucks shipped in 2023 followed by FCV trucks
- Canoo: Received orders for a delivery van from a large customer, started deliveries at the end of 2023
- Faraday Future: First delivery of a full-size crossover EV, priced over USD 300,000
- Lordstown Motors: Suspends production and sales of trucks as it files for bankruptcy protection
- Arrival: Nasdaq trading suspended; considering sale of business and assets
Summary
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| Rivian's flagship model, the R1T pickup truck (Source: Rivian) |
Among the new EV ventures established one after another since 2000 in the U.S., Rivian followed Tesla in exhibiting volume production results, and several other companies that had delayed their market introduction plans began sales in the U.S. by 2023.
The new companies develop their own strategies in terms of products, production systems, and sales systems to secure their markets and improve their competitiveness by narrowing down their customer segments, such as commercial vehicles for large fleets or ultra-luxury vehicles, improving efficiency through outsourcing and partnerships, and obtaining financial support from overseas funds and corporate groups.
However, no company has achieved profitability in the EV business, as many companies have been plagued by delays in mass production and rising capital costs amid huge upfront investments in development, production preparation, and sales network development, while at the same time having to deal with increased price competition due to increasing EV competition in the market. In 2023, some companies have received warnings from the Nasdaq stock market to cease trading, and some have even found it difficult to continue their operations due to financial difficulties. It can be said that some emerging EV OEMs have entered a critical stage in their survival.
In this report, as an update to the previous report (published in February 2023) that reported on the trends of emerging U.S. EV manufacturers, we arranged and report on the recent trends of these companies and their announced plans.
Related reports:
CES 2024: New EV models highlight OEM strategies (Feb. 2024)
Korean Battery Supplier Operations in North America (Jan. 2024)
Electric Mobility in the USA (Jan. 2024)
US Electric Vehicle Charging Infrastructure (2) (Dec. 2023)
US Electric Vehicle Charging Infrastructure (1) (Nov. 2023)
U.S. Market: BEV Sales Ratio 7.5%, with over 20% in California (Nov. 2023)
Inflation Reduction Act: Support for EV/PHEV/FCEV Purchases (Jun. 2023)
Emerging U.S. EV Makers on the Move (Feb. 2023)
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