A lost year for the EV makers?

I've been wondering what will be the last straw to break the camel's back and get $Faraday Future Intelligent Electric Inc.(FFIE)$   delisted. With a measly share price of 10 cents or so, and a market capitalization less than $5 million, I suspect that it will be a matter of time before the continual listing of the struggling EV maker is being questioned by the regulator. With such a low stock price, Faraday Future is highly susceptible to market manipulation, as evidenced by the intraday wild swings in its stock price almost daily. As the EV maker continues to be weighed down by worsening fundamentals without a credible turnaround strategy, investors have been rushing for the exit, leaving mainly speculators hoping to make quick bucks from short-squeeze as Faraday Future has become a prime target of the meme community. Nevertheless, with lack of a turnaround strategy, it may not be long before even its existence as a going concern is going to be called into question.

$Rivian Automotive, Inc.(RIVN)$   is not having a good time either, as it has embarked on drastic cost-cutting measures including retrenchment of 10% of its workforce. However, its outlook remains bleak amidst slowing EV demands, as its latest output missed forecast and the prevailing EV price war continues to erode its profit margin. Rivian has been struggling to expand its customer base beyond its key sponsor Amazon whose orders of delivery vans have fallen significantly short of previous commitment by the e-commerce giant to electrify its delivery fleet.Unless it is able to generate sufficient operating cash flows, with just under $8 billion cash balance, it may not be long before Rivian will have to raise funds to sustain its operations and stay in the EV race.

Likewise, with EV demands softening in China, $NIO Inc.(NIO)$  , $XPeng Inc.(XPEV)$  and $Li Auto(LI)$  are particularly vulnerable, as unlike their much larger peer BYD, the EV startup trio have yet to establish their presence overseas meaningfully to fill the demand gaps in their local market, while the price war ignited by Tesla has weighed on their margins. This is not helped by a deflationary Chinese economy and intensifying competition marked not least by the latest entry of the electronics powerhouse Xiaomi with a huge war chest. Coupled with a growing number of conventional car makers jumping onto the EV bandwagon, I can't help but wonder if this will be a lost year for the trio.

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