EV startups Rivian, Lucid, Nikola attempt to shore up cash

Once-hot electric vehicle startups — years ago fueled by low interest rates, free cash and Wall Street bullishness — are now scrambling to prove they can survive in tougher market conditions. That is if they haven’t gone bankrupt already.

Chief among their talking points: cash.

Executives of Rivian Automotive, Lucid Group and Nikola Corp. this week each detailed plans to reduce costs while attempting to grow operations and make their first profits. Those efforts have ranged from job cuts and production changes to supplier rearrangements and shifting priorities.

The scramble comes as EV adoption takes hold slower than many expected and after companies spent billions in an attempt to rush vehicles to market to gain first-mover advantages in white-space segments.

Of those three automakers, Rivian is in the strongest cash position as EV adoption struggles. The company says it has enough cash to get through its big R2 launch in early 2026.

The slowdown, as well as the increased competition, has even impacted U.S. EV leader Tesla, which is in the midst of a global restructuring that includes laying off roughly 10% of its workforce.

Wall Street analysts have referred to the current state of the electric vehicle market as an “EV winter,” an end to so-called EV Euphoria or, more optimistically, a temporary pullback that carmakers will need to overcome for long-term gains.

“US EV adoption likely entered an air pocket after having penetrated initial adopters & specific regions,” Citi analyst Itay Michaeli wrote in a Thursday investor note. “The situation will not change overnight, but we see reason for optimism over the next 12-18 months.”

Rivian has been on a cost-cutting mission for months. It has trimmed staff, retooled its Illinois plant to increase efficiencies and paused construction of a new multibillion-dollar factory in Georgia. That last measure is expected to save more than $2.25 billion in capital spending, including the impact of starting production of Rivian’s next-generation R2 vehicle at its current plant in Normal, Illinois.

Rivian reported $7.86 billion in cash, cash equivalents and short-term investments to end March, with more than $9 billion in total liquidity.

Lucid, for its part, ended the first quarter with approximately $4.6 billion in cash, cash equivalents and investments, with total liquidity of approximately $5.03 billion.

Lucid CEO Peter Rawlinson said he’s never been “more optimistic” about the startup’s future, despite notable demand issues, significant losses and capital needs. The company raised $1 billion from an affiliate of Saudi Arabia’s Public Investment Fund, its largest shareholder.

“We have identified additional opportunities in cost of goods sold, and we’ll continue to focus…