American electric vehicle startups are anticipated to demonstrate the effects of Tesla’s price battle at the time of them releasing their quarterly results over the next few days . Investors are eager to learn more about how the businesses are managing cash in the face of a funding crunch.

Even the market leader Tesla has issued a “turbulent times” warning, and even established automakers like Ford Motor are losing money on EVs despite having bigger pockets. Electric vehicle manufacturer Lordstown Motors, which filed for bankruptcy in June, is the first victim of the strain.

Companies like Lucid and Nikola, who continue to struggle with production and demand, are likely to announce another quarter of high capital burn.

“The only ones that have a chance besides Musk are the legacy auto providers and so far they are proving that they are losing money hand over fist trying to get into the EV game,” said Thomas Hayes, chairman of hedge fund Great Hill Capital. Hayes follows the EV industry closely but holds no shares.

The one exception appears to be Rivian Automotive, a company funded by Amazon, which is anticipated to announce a three-fold increase in revenue to $983.1 million for the April–June quarter.

According to 13 analysts surveyed by Visible Alpha, the company’s cash outflow likely slowed to $1.19 billion in the second quarter, down by around $600 million from the January-March period. From a negative 58.6%, gross margins probably improved to a negative 51.3%.

“Rivian’s competitive advantages are shining brighter, with the company emerging as a demand creator when considering that the majority of its buyers have never previously purchased a pickup truck,” Needham analyst Chris Pierce said.

The price objective of the company’s shares, which has increased by nearly 40% so far this year, has increased by at least 8 analysts.

As a result of supply-chain issues, Lucid, which is majority owned by Saudi Arabia’s Public Investment Fund, reported a decline in production from April to June. On Monday, it is anticipated that these losses will grow.

According to six analysts surveyed by Visible Alpha, it is expected to report a cash balance of $2.76 billion for the April–June period, up from $900 million in the previous three months, following the announcement of a $3 billion fundraise.

On Friday, Nikola, which issued a going-concern warning again in May, is anticipated to disclose a 15% decrease in revenue and a widening loss.

As the corporation tries to cut down on its cash burn through layoffs and the liquidation of a recently acquired battery company, its shares have increased by about 40% this year. Analysts have suggested that might not be sufficient to cover its finance requirements though.

Fisker, which has substantial cash reserves and a strong profitability target, is anticipated to disclose its first revenue from vehicle sales on Friday, after the company began making Ocean SUV deliveries in the second quarter.

But because of a parts scarcity, the company fell short of its production goal for the quarter.

Fisker’s reservations will be closely watched by investors because the Ocean SUV is not eligible for the $7,500 federal tax credit.

(Adapted from MarketScreener.com)