Rivian and Lucid in the red, Xpeng in the green and in Tesla’s footsteps?

Carmakers reveal financial results for first quarter 2022 Xpeng saw the opposite. Something to scare European producers with the strengthening of their presence in Europe.

The American Rivian, to which we owe the excellent Rivian R1T pickup, sold 1,227 vehicles during the first quarter of 2022 and produced 2,553. If we take into account the revenue for the same period ($ 95 million) and the cost of production ($ 597 million)), we reach $ 156,418 in losses per. vehicle. That’s a lot! And this is without a doubt one of the reasons why Ford sold 400 million Rivian shares. But there is still the giant Amazon, investor and customer of the brand through the electric van.

At Lucid Motors, it’s not necessarily better. The American manufacturer of the luxury sedan Lucid Air announces that it has sold 360 copies of the car for a turnover of 57.7 million dollars. Lucid does not indicate the number of vehicles produced in the same period, however Sauerkraut garages estimated at 800 copies. Which in total gives a loss of $ 147,222 per. vehicle.

Note that these figures only take into account the production costs, and not all operating costs related to the company such as research and development and all other costs (administrative, marketing, etc.). It is obvious that a start-up company loses money in the beginning due to the investments made to be able to produce its first vehicles. To get a clearer picture of where Rivian and Lucid are, we can compare with Tesla, but also with the Chinese Xpeng which was launched on the market in 2018 and which will strengthen its presence in Europe this year with P5.

Tesla: a special situation at launch

When the Model S was launched in 2012, Tesla managed to raise $ 23,114 for each Model S produced. A completely different situation than its two American competitors. However, it needs to qualify as Tesla was not at its first vehicle produced: The California brand had a little more experience thanks to the Roadster based on the Lotus Elise.

We remember that Tesla did not go far from bankruptcy when it launched the Model 3 as Elon Musk had said the company only had 1 month of cash left in the worst of this ” production hell as the businessman described it. In 2022, the situation is quite different with a record-breaking first quarter for the company.

Xpeng: in Tesla’s footsteps?

The Chinese company Xpeng allows us to make another comparison with its American competitors. The company (of which Xiaomi is one of the investors) launched the Xpeng P7 in 2020 with initial deliveries to its Chinese customers during the summer of the same year. Since then, the company has experienced real success with 34,561 vehicles delivered during the first quarter of 2022 to a production margin of 12.2%, which means that the company does not lose money on the production of its P5s (launched last year) and P7. Moreover, the production of P7 was profitable from the third quarter of 2020, just a few months after the first deliveries.

But once again, it needs to qualify: the Xpeng company has been around since 2014 and launched production of its first car, the G3, an electric SUV, in late 2018. Financial data available since Q3 2019 reports a negative production margin, which only became positive from Q3 2020. Regarding the most recent quarter, Chinese business continues to lose moneyif we take into account all the operating costs of the company.

It is therefore difficult to predict the future of all these manufacturers, but the example of Tesla must make them envious: The US company has had continuous profits since 2021 after experiencing a few profitable episodes in previous years. The road is therefore still long for Rivian, Lucid Motors and Xpeng.

To follow us, we invite you to download our Android and iOS application. You can read our articles, files and watch our latest YouTube videos.

Leave a Comment