As Rivian and Lucid Struggle, Elon Musk Says, Volume Production,…

As Rivian and Lucid Struggle, Elon Musk Says, Volume Production,…

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Midst Production difficulties in electric vehicle startups this contains Lucid Group, Inc. LCID And Rivian Automotive, Inc. RIVN, Twitter users recently discussed the viability of such companies. EV pioneer and Tesla Inc. TSLA CEO Elon Musk interfered with his thoughts too.

What happened: “Achieving volume production and positive cash flow is insanely difficult,” Musk tweeted Thursday. The billionaire’s comments came in response to an old video shared by Twitter user @teslaownersSV, in which Musk said that in order for a new company to survive, it should be able to solve autonomy and electrification, and at the same time To build vehicles that are extremely “convincing” and achieve volume production where the cost of a car is low enough that the price does not exceed affordability.

“If it costs more than people can afford, no matter how great it is, they can’t buy it,” Musk explained in the video.

Regarding Rivian, the Tesla CEO said the rival company needed to solve its pricing problem as the cost of its cars had reached a point where only a select number of people could afford to buy them.

“Either they have to fix it or they’re in big trouble,” he said of Rivian in the video, while noting that the same principle applies to all automakers.

See also: The best stocks for electric vehicles

In a separate tweet, a Tesla influencer tweeted that there is “a real possibility that Tesla is the only publicly traded mass-market automaker that will be cash flow positive by 2026.”

Musk supported his opinion by saying “true.”

Why it matters: Tesla cut car prices in China, and it did announced several price reduction rounds also in other countries.

The company’s move is consistent with Musk’s belief in making cars affordable, but it has put other automakers in a difficult position. If Tesla’s competitors stay the same prices, they risk losing market share; on the other hand, if they follow…

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