[Epoch Times] American electric vehicle (EV) start-ups are dealing with falling demand, as buyers look elsewhere, or put off purchases entirely. High costs, quality-control issues, and supply-chain problems are taking a toll on the EV sector, according to the latest quarterly reports.For example, Rivian Automotive reported mixed quarterly results after a second recall in less than six months, reported Fox Business. Over 12,000 electric trucks and SUVs were recalled, or almost 89 percent of all of those produced through September, after a faulty sensor in the front passenger seat was discovered, according to The Wall Street Journal. The company previously saw a net loss of $1.72 billion for the fourth quarter of 2022, compared to the $2.46 billion loss during the same period in 2021.
Rivian’s goal of producing 50,000 vehicles in 2023 fell below previous estimates, as production was hit with supply-chain issues and temporary factory shutdowns to improve production levels at its Illinois plant.
The EV company lost $6.75 billion on $1.66 billion in revenue, for all of 2022, forcing executives to cut spending after two rounds of layoffs and delays in a number of products, reported Fox Business.
The new start-ups took a hit last year when the Biden administration imposed domestic manufacturing requirements and price caps for EV part makers in exchange for receiving federal tax credits to build their vehicles.
I bet GM made out OK on that deal.
It was hoped that federally funded incentives of up to $7,500 per EV made in America would cause demand in the sector to jump, but restrictions on foreign-made parts have put a damper on sales.
Unfortunately, most Rivian customers do not qualify for the EV tax credits.
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