EV makers are preparing to release some unsettling quarterly figures, as most startups are predicted to record losses as they continue to burn through cash. And while legacy automakers may be better prepared to weather the storm by virtue of their deeper cash reserves, it’s unlikely enough to stem the bleeding associated with the development of new tech.
Earlier this year, market leader Tesla triggered a price war with multiple deep cuts to prices across its range. The aggressive move by the company may still have an impact on its own bottom line, with the company sacrificing margins for growth. But executives are braced for “turbulent times” ahead, with Elon Musk last month telling investors that the world economy is going through an unpredictable period.
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