2012 Karma Ecosport on 2040-cars

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EV startups are about to report another quarter of fierce cash burn

U.S. electric-vehicle startups are expected to report another quarter of dwindling cash reserves next week, piling pressure on a group of companies that are struggling to ramp up production and have few options for funding in a turbulent economy. Having gone public with hopes of shaking up the automobile industry, these companies have seen their market valuations evaporate in the past few months as EV demand slows and market leader Tesla Inc cuts prices to stoke orders. Lucid Group kicks off first-quarter earnings for the group on Monday, with the company expected to report a 36% sequential slide in cash reserves, according to Visible Alpha. Rivian Automotive, meanwhile, will likely report on Tuesday that its cash balance fell by 6.8% to $10.78 billion from the preceding quarter, per a Visible Alpha estimate. The Amazon.com Inc-backed firm, whose shares have declined by nearly a quarter this year, is also expected to report a larger loss of $1.75 billion as both deliveries and production fell in the period. It posted a $1.59 billion loss a year ago. Fisker Inc and Nikola, both of which report earnings on Tuesday, are expected to see their cash reserves decline by 5% and 15%, respectively, according to Visible Alpha. "Any company that's losing money with a low valuation is toast and EVs are no exception. I think it is just a slow bleed. Maybe they'll get lucky and some of their technologies maybe bought by bigger players," said Thomas Hayes, chairman of hedge fund Great Hill Capital. A drop in valuations of companies has rendered selling equity for precious cash more ineffective and investors are becoming increasingly unhappy with their stake being diluted as several startups are yet to recognize revenue from operations. British EV startup Arrival SA and Nikola have issued going-concern warnings in the past few months, with the former set to merge with blank-check firm Kensington Capital Acquisition Corp in a bid to raise cash. Lordstown Motors said this week it could be forced to file for bankruptcy due to uncertainty over a funding deal with major shareholder Foxconn. Its earnings in an unscheduled release on Thursday showed Lordstown's cash balance fell 11% sequentially. Some of the companies including Lucid and Rivian have also said they would not provide data on reservation numbers going forward, sparking some concern among investors. It is a "disturbing development," CFRA Research analyst Garrett Nelson said.

Karma Revero revealed, along with solar roof that powers the car

While we obviously know the general shape of the upcoming Karma Revero - it's based on the old Fisker Karma, after all – the exact details of the Revero are still a bit under wraps. Thankfully, today the Karma Automotive website was updated with some new information about the reborn plug-in hybrid. Say hello to what we know about the Revero. The Fisker's solar roof is still there, but now Karma Automotive says that it, "will create enough energy to power the car." Now there's something we need more details on, but all that Karma is saying for now is that, "No other vehicle sold in the US has ever offered this capability. Our owners consider our solar roof an important element in our brand identity, and we listened." The front and rear Karma badges on each Revero will be are hand-painted. "No other car company has ever done this," Karma says. "Consider it a small but symbolic statement about craftsmanship and individuality." Sure, fine. Lastly, Karma says the infotainment system will be updated and says, "Our new infotainment system represents a departure from the norm. It is simple, intuitive, and beautiful. If you like a 200 page supplement to the owner's manual to describe your infotainment system, look elsewhere." In other words, whew. If this all sounds a bit exclusive, you're right. Jim Taylor, Karma's chief revenue officer, said in a statement that, "Serving a mass market is not, and never will be, our purpose. The Revero is for a discerning group of individuals who desire beautiful, clean vehicles and a memorable ownership experience. We are thrilled to start this journey." Karma said earlier this week that it would sell the Revero through dealerships and company stores in 10 markets in North America. Karma Automotive, which is owned by Wanxiang Group, will officially debut the vehicle at a launch party for the media and owners (that means Fisker Karma owners, since the Revero is not yet available) in Laguna Beach, California on September 8. A pre-order window for the Revero will open up for Fisker owners that same day. While we're there, we'll see if the rumors that the company also plans to bring the Atlantic concept to market are anything more than wishful thinking. Related Gallery Karma Revero News Source: Karma Automotive Green Fisker Green Automakers Electric Hybrid karma karma automotive karma revero revero

Fisker delivers 4,700 electric cars in 2023, shares jump on quadrupled sales

Henrik Fisker shows off the coming Fisker Alaska pickup. (Getty Images)   Fisker said on Friday its electric vehicle deliveries jumped more than four-fold during the final quarter, helping it hand over about 4,700 vehicles for the year. The rise in quarterly sales volume was primarily driven by strong demand for the Fisker Ocean SUV, priced at about $69,000, the company said. Fisker started making its first deliveries to U.S. customers in June. The company will announce a plan in January to boost sales and deliveries to align production capacity with strong demand for the Ocean SUV, Fisker said. Shares of the California-based EV company were up more than 10% in premarket trading. They have lost about 79% so far this year. Smaller EV firms are facing dwindling cash reserves, pressured by high costs related to production ramp-ups and price cuts to boost demand. Fisker, which has a deal with Magna International's Austrian unit to manufacture its cars, made 10,142 vehicles in 2023. The company, however, slashed its annual production forecast twice in the past two months as it slowed down production to meet working capital needs.