In Focus: EV Wars Update
It's been a busy couple of weeks in the EV space. We've had delivery reports, delivery date announcements, official test drives, factories bought and sold, as well as manufacturing rights bought and sold.
In my piece on the Rivian IPO a few weeks ago, I spoke on the electric vehicle wars heating up, and over the past few weeks, the moves made by some major players have turned the heat up even more. Here is some of news that occurred over the past several days involving some of the major players in the EV wars.
Tesla ($TSLA) recently released its delivery numbers for Q3 2021. The company reported that it delivered 241,300 vehicles during the quarter, topping analyst estimates of 220,900. Deliveries in Q3 also topped Q2 2021 deliveries by 20%.
Tesla's Model 3 and Model Y accounted for close to 229,000 of the total deliveries for the quarter, and nearly 9,000 Model S and X vehicles were delivered during the quarter.
Last week a lucky few got the chance to visit the Lucid Group ($LCID) plant in Arizona for a tour and test drive of the Lucid Air Dream. From everything I've read, the car is spacious, and has a luxurious fit and finish to it. The Range edition of the car offers 520 miles of range, which is more than any Tesla, and the Performance edition of the Air comes with 1,111 horsepower.
Lucid expects deliveries to start in October, but if you haven't already reserved your Lucid Air Dream, you'll have to wait a little longer. The Air Dream Edition has already sold out and Lucid has closed reservations.
Though I've talked about holding off on an investment in Lucid, what I've read about the car from people who have taken it for a test drive has made me rethink my original position. Specifically the part about the car's fit and finish. I've seen too many Tesla's with uneven spacing between the hood and fender, and a number of other build quality concerns. Elon's personality, and the cult that is Tesla owners has caused many people to overlook these issues, but for how long? If Lucid can keep its delivery date of October, I'll definitely have to revisit the stock.
It's been a busy few weeks for Rivian. In September the company started deliveries of its R1T pickup truck. A feat that has been severely downplayed, likely because the company isn't a public company yet. Rivian was able to beat Tesla, Lordstown Motors ($RIDE), Ford ($F), and GM ($GM) to market with a functional electrical pickup truck. It's a kick to the gut of Ford and GM, whose F150 and Chevy Silverado trucks, respectively, are among those companies' best selling vehicles.
Rivian won't be private for long. The company has filed its paperwork to go public, and it released its S1 last week. The company's filing has everything I expected. Big losses, big spends, big cash reserves, and big plans. The company lost over $1 billion in 2020, spent $1 billion in research and development over the last two years, has over $3 billion in cash, and has plans to sell vehicles in the U.S. and Canada, and then expand to Western Europe and then Asia.
Foxconn and Fisker and Lordstown Motors
Earlier in the year Fisker ($FSR) completed a manufacturing deal with iPhone manufacturer Foxconn (2354.TW). The deal would allow Foxconn to manufacture a car for Fisker. Last year, Foxconn stated it wanted to be the Android of electric vehicles by creating a platform to help automobile companies make electric vehicles.
For months, the question has been where will Foxconn manufacture Fisker's vehicle, and this week we got our answer. Lordstown, Ohio is where Foxconn will manufacture vehicles. Foxconn purchased the Lordstown Motors manufacturing facility for $230 million.
Does that mean Lordstown Motors is done? Not really. Foxconn,