EV Startups on Shaky Ground
Several signal headwinds are rocking their plans as they compete with much bigger rivals in uncertain conditions.

Fisker's sports utility vehicle has one of the least expensive sticker prices in the segment at $37,499.
IMAGE: Fisker
Conditions look shaky for several American electric-vehicle startups as the larger EV segment undergoes a price war started by market leader Tesla and EV demand wanes for their higher-priced models.
The carmakers are battling less expensive EVs produced by Ford and other legacy brands, along with the Tesla price cuts that started in January – all compounded by continually rising interest rates.
Up to $7,500 in new federal tax credits for some EV models don’t seem to be helping the startups, and the effects of the segment market pressures have been swift and damaging for the new kids on the block.
For starters, Rivian plans a $1.3 billion cash raise with a convertible-note sale to bankroll development of the smaller sized R2 series, whose launch it delayed by a year. The company recently laid off 6% of its employees and also plans to produce 10,000 fewer vehicles this year than analysts forecasted. Its stock fell nearly 15% to an all-time low after the cash raise was announced.
Sedan maker Lucid forecasted its 2023 production will fall short of analyst expectations after experiencing a steep fall in orders in the fourth quarter. It also delivered significantly fewer vehicles last year than it produced. The company has indicated it plans to increase marketing.
Commercial EV truck maker Nikola said it doesn’t expect pressures on demand for its models to let up for the foreseeable future. Its shares have fallen 5% since its most recent earnings results.
Meanwhile, Fisker is bucking the downward trend among its EV startup cohorts. Though its produced a small number of its sports utility vehicle, the model has one of the least expensive sticker prices in the segment at $37,499, and its ascending orders reflect that.
Originally posted on Auto Dealer Today
More Showroom

Used Market Stabilizes
The Carfax Used Car Index noted a major drop in used-vehicle price increases in July after several months of hikes.
Read More →
California Hybrids Reach State Record
The Golden State still leads the country in electric-vehicle registrations, but much like the rest of the U.S. its hybrid market share is up while full electrics stabilize after a dramatic first-quarter dip.
Read More →
My Mercedes in the U.S.
The German brand debuted its studio dealership concept for the first time in the states in Los Angeles, tapping Americans’ penchant for creative distinctions.
Read More →
Used Sales Hit Summer Drag
The vacation season, combined with high prices, has dented deliveries and added to inventories, though supply is still slim enough to keep listings elevated.
Read More →
California Launches EV Rebate Program
Participating automakers are matching the state's $13.5 million investment in new electric-vehicle rebates scheduled to take effect later this summer.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
The Trade-In Paradox
Retailing older cars with confidence in today’s market is a matter of establishing and following a clear process that can turn greater profit for auto dealers as they aim to meet used-unit hunger.
Read More →
Focus on Vehicle Cabins
The market for interior materials will grow in coming years as automakers look to meet consumer demand while staying competitive with changeups to sourcing and included features.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
European EV Market Hits Record
Seven out of the top 10 electric vehicles sold so far in 2026 in Europe are by European brands, and automakers are seeing the power train fill up their order books.
Read More →