Los Angeles, CA – The electric vehicle sector is facing a challenging time as once high-flying companies like Rivian, Lucid, and Fisker are now grappling with significant setbacks. The future that once seemed bright for these Tesla rivals has dimmed considerably, with market leaders like Tesla also warning of tough times ahead.
Rivian recently announced disappointing quarterly results and outlook, leading to a significant drop in its market capitalization from a peak of $153 billion in 2021 to $11 billion. The company has also decided to cut its workforce by about 10% to navigate through these challenging times. Analysts have even speculated on the possibility of Apple acquiring Rivian due to its low valuation, hinting at a potential breakthrough into a new market for the tech giant.
Similarly, Lucid has seen its market cap plummet from a peak of $91.4 billion to $7.6 billion, far below its initial projections. The company’s struggles have led to rumors of Saudi Arabia’s sovereign wealth fund acquiring the rest of Lucid, but this scenario has not materialized. On the other hand, Fisker’s market cap has dropped to $258 million from $4.1 billion in 2021. The company faces challenges with its stock trading below $1 and an ongoing investigation by the National Highway Traffic Safety Administration into claims of “unintended vehicle movement” in its Ocean SUV.
In a bid to stay afloat, Fisker is reportedly in advanced talks with Nissan for a potential partnership and financial assistance. The proposed deal would see Nissan investing $400 million in Fisker’s truck platform and collaborating on building the Alaska pickup starting in 2026. Fisker’s CEO, Henrik Fisker, remains optimistic about the company’s future despite the current slump in the EV market, expressing confidence in overcoming these challenges and emerging stronger in the long run.