auto dealer in black and red logo
MenuMENU
SearchSEARCH

EV Startups on Shaky Ground

Several signal headwinds are rocking their plans as they compete with much bigger rivals in uncertain conditions.

March 8, 2023
EV Startups on Shaky Ground

Fisker's sports utility vehicle has one of the least expensive sticker prices in the segment at $37,499.

IMAGE: Fisker

2 min to read


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.

LEARN MORE: Tesla Cuts More Models' Prices

 

More Dealer Ops

Auto Dealer Today, Dealer Debrief, 07/15/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 15, 2026

Dealer Debrief: Defection Data & EV Updates

In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.

Read More →
Two professionals shake hands while exchanging a car key fob beside a vehicle, symbolizing a vehicle sale, lease agreement, or dealership transaction.
SponsoredJuly 8, 2026

How Defection Data is Bridging the Dealership Conversion Gap

Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.

Read More →
Auto Dealer Today, Dealer Debrief, 07/02/2026 with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 2, 2026

Dealer Debrief: Where are you losing customers?

In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.

Read More →
Ad Loading...
Auto Dealer Today, Dealer Debrief, 06/25/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJune 26, 2026

Dealer Debrief: Improving Your Inventory Management

In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.

Read More →
group of people standing in a circle holding puzzle pieces together
Dealer OpsJune 1, 2026

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins

A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.

Read More →
Cover image for a BOK Financial report titled “Timing the market: How avoiding volatility entirely can hurt long-term reinsurance program performance.” The image shows several road construction barricades with flashing amber warning lights lined up in a nighttime work zone. Beneath the image, red text explains that avoiding volatility can mean falling behind inflation and missing market rebounds that drive long-term surplus growth. The BOK Financial logo appears at the bottom right.
SponsoredMay 8, 2026

What Market Timing Mistakes Mean for Your Reinsurance Program

When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.

Read More →
Ad Loading...
two cars on a billboard, No Hidden Fees
ComplianceMay 1, 2026

Dealer Ads and the FTC

The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.

Read More →
Closeup of white car's headlight, front end
Dealer Opsby Hannah MitchellApril 17, 2026

Used Autos Supply Dwindles

The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.

Read More →
hands making protective frame over red car, Risk Reality Check, Be Proactive, Auto Dealer Today logo
Dealer OpsApril 1, 2026

Managing Risk Effectively Through Changing Times

The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.

Read More →
Ad Loading...
Car key, stacks of coins, and a paper car cutout with AutoPayPlus logo, representing auto financing, loan terms, and vehicle affordability trends.
Dealer Opsby StaffMarch 31, 2026

Survey Reveals What Won't Fix What's Breaking Car Sales

AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.

Read More →