Tesla Owners Silicon Valley has released the second part of their interview with Elon Musk today, and the CEO had some advice for competitors Lucid and Rivian.
With years of experience in struggling through a difficult production ramp himself, Musk said Lucid and Rivian are “tracking to bankruptcy,” and that unless they make dramatic changes, both fledgling automakers “will end up in the car cemetery,” something which he hopes won’t happen.
“Unless something changes significantly with Rivian and Lucid, they will both go bankrupt. They are tracking to bankruptcy.
I hope they are able to do something. Unless they cut their costs dramatically they are in deep trouble and will end up in the cemetery like every other car company with the exception of Tesla and Ford,” Musk added.
Musk didn’t have any specific advice for Lucid, but said that Rivian needs to “cut costs immediately across the board dramatically or they are doomed.”
When looking at the automaker’s recent financial statements, it is hard to argue with that sentiment.
In 2021 Rivian posted a net loss of $2.45 billion for the final three months of the year, and a $4.22 billion loss for the twelve months ended December 31, 2021. Things didn’t change in the first quarter of this year, with the company posting another net loss of $1.6 billion in Q1 2022.
You can watch the full interview below. Musk’s comments on Lucid and Rivian start at around 10:45.