To The Moon

$Rivian Automotive, Inc.(RIVN)$   has been downgraded by analysts over its disappointing business outlook, as the EV maker is heavily reliant on its investor and sponsor Amazon that has fallen short of its orders in its plan to electrify its delivery fleet. The EV startup has so far not yet been able to generate sufficient operating cash flows, so that it has to continue depleting its cash reserves to sustain operations. However, with just under $8 billion cash balance today, it is projected that Rivian has only sufficient cash to last through another 3 years at most.

Meanwhile, its Tesla-wannabe peer $Faraday Future Intelligent Electric Inc.(FFIE)$   continues its roller-coaster ride with double-digit percentage intraday swings almost daily, one thing is apparent to me: the daily fights between the bulls and the bears. The bulls appear to be the meme community speculating on short-squeeze gains despite deteriorating fundamentals of the electric vehicle maker, while the bears are obviously the fundamentalists who have been rushing for the exit as the company's prospects worsen.

With a share price lower than 10 cents, Faraday Future Intelligent Electric had since 28 December 2023 received a written notice from the Nasdaq Stock Market LLC stating that the company has failed to maintain a minimum bid price requirement of $1 and until 25 June 2024 to regain the compliance, failing which, its securities will be subject to delisting. With a turnaround strategy to achieve profitability and defend shareholder values that seems to be empty talk with no convincing plans, I'm highly doubtful that its stock price would gain 1000% within the next 3 months, so I believe that it will just be a matter of time before the company will be delisted.

A patchy economic recovery in China and looming deflation has led to weak domestic demands for new electric vehicles, as many tighten their belts and defer discretionary spendings. Prevailing price wars among the EV makers are not helping either, but have led to worsening margin erosion, weighing on the stock prices of the Chinese EV trio $NIO Inc.(NIO)$ , $XPeng Inc.(XPEV)$ and $Li Auto(LI)$  . Adding to their sorrows is a growing number of conventional car makers jumping onto the EV bandwagon, resulting in an EV supply glut. As the trio struggles to find enough buyers to sustain growth, 2024 may be a lost year for them.

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