Amrith Ramkumar and Shane Shifflett of The Wall Street Journal report that makers and suppliers of electric cars are dealing with diminishing cash and uneven sales. They write:
Electric-vehicle startups were struggling before the election. Donald Trump’s victory could send them into a tailspin.
Several high-profile companies, including electric SUV maker Fisker and bus manufacturer Arrival, filed for bankruptcy earlier this year. Swedish-based battery maker Northvolt became the latest casualty last week, filing for Chapter 11 after BMW canceled a key order.
At least a dozen other startups, specializing in electric vehicles or batteries, are at risk of running out of cash by next summer, according to a Wall Street Journal analysis of their most recent filings.
Even shares of more stable startups, such as Rivian Automotive and Lucid Group, are down nearly 50% this year as they face an increasingly challenging outlook. […]
“A lot of these management teams go into it thinking they’re going into the next Tesla, but that proves to be more the exception than the rule,” said Brian Dobson, a managing director at brokerage Clear Street who has followed the sector closely.
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