Elon Musk Takes a Swipe at Rivian, Lucid as Shares Tumble on Disappointing Earnings
$Tesla(TSLA.US$ Technoking Elon Musk predicted the demise of his company's rival $Rivian Automotive(RIVN.US$, saying the Irvine, California-based electric vehicle maker will go bankrupt in less than two years.
He also took a swipe at $Lucid Group(LCID.US$, saying the company has stayed afloat only because of the funding from Saudi Arabia.
Musk was replying to questions posed by his followers on X, formerly known as Twitter after the two rivals of Tesla posted disappointing financial results that sent their shares tumbling. EV makers have seen massive stock sell-off this year as demand cooled. Even Tesla saw its shares slump 22% so far in 2024.
Rivian's stock dove 26% Thursday morning after the company said it expects to produce 57,000 in 2024, little changed from the previous year. That's well below the 66,000 to 68,000 vehicles that analysts were expecting for this year, according to a MarketWatch report.
The company has been burning cash, with fourth quarter results showing adjusted net loss of $1.36 a share. Rivian also forecast that adjusted loss before interest, taxes, depreciation and amortization in 2024 could reach $2.7 billion in 2024.
"Current trajectory has them bankrupt in about six quarters," Elon Musk said in a post on his social media platform X, formerly known as Twitter. "Maybe that trajectory will change, but so far, that hasn't happened.
In June, the company said Ayar Third Investment Co., an affiliate of Saudi Arabia's Public Investment Fund agreed to buy 265.7 million shares of Lucid's Class A stock in a $1.8 billion private placement, according to a filing with the Securities and Exchange Commission.
Musk said Lucid's "Saudi sugar daddy is the only thing keeping them alive."
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Stonkslanger : He’s not wrong! Investing in EV’s are any other democrat save the planet bull shit will just make you go broke. Stay woke stay broke my friends!!!
70896743 : Well done Mr. Elon. But you did all the hard work, so take a few moments to bask in the sun.
MonkeyGee : The only way RIVN can survive is to move manufacturing to China. just like what Tesla did. if Tesla didn't do that, they would have been dead already.
70896743 MonkeyGee: I don't know about the China absolute. I'm thinking India where there's no shortage of people, or the middle east where there's lots of oil money to be spent.
Ricky Dennis Stonkslanger: much love and respect to everyone everyone's friend Ricky D such love
Salvador Orantes Stonkslanger: What a stupid comment Elon is the richest man because he makes electric cars dumb ass