Factbox – What are electric vehicle startups doing to overcome weak demand? Reuters

(Reuters) – Fisker filed for bankruptcy protection on Monday, the latest electric vehicle startup to do so due to funding issues, weak sales and supply chain and distribution issues.

Demand for Fisker’s (OTC:) flagship Ocean electric SUV was weak. The company has cut jobs and disinvested to slow its cash burn and is working with dealerships to boost sales and has sought investments from major automakers in a desperate bid to survive. None of that worked.

Other U.S. EV startups are racing to lower manufacturing costs, lay off workers and develop cheaper models to weather weak demand caused by steep borrowing costs.

rivian cars

Rivian (NASDAQ:) shut down its assembly line for several weeks this year to renovate its facilities. This is a move aimed at reducing costs and helping manufacturers of the R1S SUV and R1T pickup trucks increase profitability.

To increase demand and increase efficiency, Rivian recently announced a second-generation vehicle with new powertrains, upgraded software and fewer parts.

Rivian, which was reluctant to cut vehicle prices last year, introduced lower range options for existing vehicles in February.

The startup focused on reducing its cash burn by renegotiating supply contracts and building some components in-house. Rivian had cash and cash equivalents of $5.98 billion in the first quarter, compared to $7.86 billion in the fourth quarter.

Last March, Rivian introduced the smaller, more affordable electric R2 SUV and R3 crossover, and plans to begin production of the R2 at its existing U.S. plant, with accelerated deliveries to the first half of 2026.

Lucid Group

Lucid Group (NASDAQ:) said in May that it would reduce its U.S. workforce by 6%. The company has missed analysts’ expectations for revenue for six consecutive quarters.

The price of Lucid AirPure has been significantly reduced, and free regular inspection and charging allowances for two years have been included as incentives.

Last November, Lucid unveiled the Gravity SUV, which starts at under $80,000 and is scheduled to go into production later this year.

To attract a larger customer base, Lucid, which is backed by Saudi Arabia’s Public Investment Fund, plans to start producing more affordable midsize cars in late 2026, with a price point of around $50,000.

Lucid ended the first quarter with cash and cash equivalents of $2.17 billion, compared to $1.37 billion in last year’s fourth quarter.

Nicola

Nikola (NASDAQ:) is switching to heavy-duty equipment powered by hydrogen after some of its battery-electric trucks caught fire in August, forcing a recall.

The company expects truck revenue to reach up to $170 million in 2024 and aims to sell 450 units this year, including hydrogen fuel cell electric trucks.

Nikola’s cash and cash equivalents at the end of the first quarter were $345.6 million, down from $464.7 million in December.