Fisker, the most recent electric car company to fail due to funding issues, low sales, and issues with the supply chain and distribution, filed for bankruptcy protection.

The popular Ocean electric SUV from Fisker has not seen much demand. The firm cooperated with dealerships to promote sales, stopped investments and eliminated workers to curb cash burn, and frantically sought an investment from a big manufacturer to stay afloat. That was all ineffective.

In order to survive a decline in demand brought on by high financing prices, other American EV firms are cutting expenses associated with production, laying off employees, and racing to create more affordable models.

In an effort to save expenses and assist the manufacturer of R1S SUVs and R1T pickup trucks in becoming profitable, Rivian closed its production line for several weeks this year in order to retool the factory.

Rivian recently unveiled the second generation of their cars, which include new drive units, updated software, and fewer parts, in an effort to enhance demand and efficiency.

Rivian deferred lowering the price of its automobiles last year, but in February it unveiled more affordable versions of its current models.

The business has renegotiated supplier contracts and built some components internally in an effort to lower its financial burn. In the first quarter, Rivian reported $5.98 billion in cash and cash equivalents, down from $7.86 billion in the fourth quarter.

In order to expedite delivery in the first half of 2026, Rivian also unveiled its more affordable, smaller R2 SUVs and R3 crossovers in March. The company intends to begin manufacturing the R2 in its current U.S. facility.

In May, Lucid Group announced that it will cut six percent of its US personnel. For six consecutive quarters, the business’s sales has fallen short of analysts’ projections.

In addition to offering two years of free regular maintenance and a charging allowance, the price of the Lucid Air Pure has been drastically reduced.

The Gravity SUV, which Lucid debuted in November and is anticipated to go into production late this year, will start at less than $80,000.

Lucid, supported by Saudi Arabia’s Public Investment Fund, plans to begin producing a more reasonably priced mid-size car in late 2026, with a price tag of about $50,000, in an effort to draw in a wider client base.

Towards the conclusion of the first quarter, Lucid had $2.17 billion in cash and cash equivalents, up from $1.37 billion in the fourth quarter of the previous year.

After a recall of several of its battery-electric vehicles in August due to fires, Nikola is switching to hydrogen-powered large trucks.

The business plans to sell 450 vehicles this year, including its hydrogen fuel cell electric trucks, and anticipates up to $170 million in truck income by 2024.

At the conclusion of the first quarter, Nikola’s cash and cash equivalents were $345.6 million, as opposed to $464.7 million in December.

(Adapted from EconomicTimes.com)

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