To The Moon

With the soaring stock price of $Tesla Motors(TSLA)$ $Tesla.US, it not only promotes the stock price of other emerging electric vehicles, but also affects the market situation of some American brand electric vehicles. Here we will sort out the recent developments and events of this industry.

General Motors (GM) 

Personally, I think $General Motors(GM)$ GM's fourth-season financial report is excellent. Its brand Chevrolet, the affordable electric vehicle Bolt launched, successfully promoted GM's share of the electric vehicle market from 1% to 6%. Bolt's low-cost strategy has attracted many consumers who want to own a simple walking electric car. In addition to the excellent financial report, GM announced that it will invest $650 million in the American lithium mining company LAC to ensure the future supply of lithium raw materials, and also respond to the requirements of domestic raw materials in the tax reduction policy for electric vehicles.

I realize that GM is steadily moving towards the transformation of electric vehicles, and I plan to launch a number of newly designed electric cars, pickup trucks and SUVs this year and next year. Although its gross profit margin is only half that of Tesla, GM is moving towards maritime tactics, occupying the market through a variety of models. For more conservative American consumers, GM's brand value still exists, but I predict that global sales may not improve much.

Ford decided to reduce the price

I think under the pressure of Tesla's price reduction, $Ford(F)$ Ford also announced a 20% reduction in the price of its electric vehicles. Last year, Ford's profit of electric vehicles was close to zero under the influence of Qualcomm, but the current price reduction will only make the situation worse. Even so, in order to maintain competitiveness, price reduction is a last resort. In the fourth quarter financial report released, Ford's cost savings have achieved some results, and the gross profit margin has not decreased. After the price reduction, Ford may still be able to maintain the profit, otherwise Tesla will get 20% profit for every car sold, and Ford will sell it at a loss, which is really unbearable.

Lucid Motors

Last Friday, it was reported that the Saudi Arabian Sovereign Fund announced the acquisition of all the shares of Lucid Motors, which led to a sharp rise in Lucid's stock price of more than 100%, and finally closed at about $12. There were many limit-ups and limit-downs on the way. Although Lucid's vehicle design is exquisite, it is relatively slow in mass production speed. Only 7,100 vehicles were produced in 2022, and the cash flow is also decreasing. Fortunately, large shareholders in Saudi Arabia especially love boutique cars and hold more than 60% of the company's shares, so It can provide strong support for Lucid's operation.

Rivian

I think it should be noted that $Rivian Automotive, Inc.(RIVN)$  Rivian recently announced that it will lay off again, and 6% of its employees will be laid off, which will be a big blow to its production capacity. With high labor costs and the large discount of competitor Tesla, it is difficult for Rivian to cope with such a discount competition. At the same time, the price of its model is also high, which does not meet the government's tax reduction conditions. Now, he must focus on meeting Amazon's needs and produce electric delivery vehicles as soon as possible.

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