Lucid and Rivian started selling their electric vehicles (EVs) late in 2021, and two years later both automakers are still struggling to find their footing. According to industry estimates both are experiencing substantial losses on each vehicle they produce, although to differing degrees.
Lucid is faring far worse than Rivian, with the luxury EV automaker set to lose a staggering $338,000 for every car it builds in 2023, according to a Bloomberg Intelligence estimate. The company has yet to announce their Q3 production figures, but through the first half of the year they produced 4,487 vehicles, equating to a cumulative $1.5+ billion loss.
Rivian, while not immune to losses, is in a comparatively better position. The Wall Street Journal estimates that Rivian is losing approximately $33,000 per vehicle. Compared to Lucid, Rivian also has a more optimistic outlook with plans to produce 52,000 units this year, while Lucid looks like it will struggle to meet its target of “more than 10,000 vehicles.”
The financial challenges both companies face are not unexpected in the capital-intensive world of automotive manufacturing, something which Tesla CEO Elon Musk knows all too well and has cautioned Lucid of before. Despite having deep-pocketed backers like the Saudi Arabia Public Investment Fund for Lucid and Amazon for Rivian, these losses continue to be a significant concern. The competition they face from established EV manufacturers, such as Tesla and traditional automakers like Mercedes-Benz, BMW, and Volkswagen, further adds to their challenges.
While Lucid is struggling to increase its sales volume, Rivian’s sales have shown steady growth throughout the year, putting them on a clearer path to profitability.