Name: Why Electric Vehicles Companies Are Hanging by a Thread
Uploaded: 2024-01-02T10:30:00Z
Duration: 4 min 13 s
Description: Electric vehicle manufacturers like Lucid, Lordstown Motors and Faraday Future were big winners of the stock boom two years ago. Now all three companies’ shares have fallen dramatically. WSJ's Dion Rabouin and George Downs discuss why. Photo illustration: David Fang

https://www.barrons.com/client

Topics

Memberships

Tools

Customer Service

Network

Newsstand

For Business

For Education

For Advertisers

Account

About Barron's

bolded

unBolded

Under CEO Cristiano Amon, semiconductor company Qualcomm is bringing its technology to multiple industries. This conversation was recorded on May 28, 2025.

https://m.wsj.net/video/20250717/f95245f1-1b2d-453e-a058-30d6a835822a/1/hls/manifest-hd-wifi.m3u8

Qualcomm CEO Shares the Company's Disruption Strategy

That's according to Okta CEO Todd McKinnon, who also spoke about how the company's name is tied to pilots and why flexibility is a core aspect of Okta's business.

https://m.wsj.net/video/20250710/d3fadd54-0fc6-4961-a2c0-0d858131e3c7/1/hls/manifest-hd-wifi.m3u8

Why Okta Wants 'Authentication to Disappear'

Dr. Robert Grossman, CEO of NYU Langone Health, which has consistently ranked as one of the best hospitals in the nation. talked about the Trump administration's plans to significantly cut the budget of the National Institutes of Health (NIH).

https://m.wsj.net/video/20250715/02e28b09-0b7e-4a48-8227-6dbbb42d9598/1/hls/manifest-hd-wifi.m3u8

NYU Langone CEO on NIH Cuts: 'That Takes a Scalpel, Not a Sledgehammer'

Though quality of care is excellent in the U.S., access to care needs to be improved, said Dr. Robert Grossman, CEO of NYU Langone Health, which has consistently ranked as one of the best hospitals in the nation.

https://m.wsj.net/video/20250715/fc3563ea-508b-4d6d-b32a-a77f939c6e5b/1/hls/manifest-hd-wifi.m3u8

NYU Langone CEO Says This Can Help the U.S. Government Fix Healthcare

Dr. Robert Grossman, CEO of NYU Langone Health, spoke to At Barron's about how the health system has transformed and changes he made along the way.

https://m.wsj.net/video/20250703/c25a5233-a5a6-48c9-bf10-ea3948ab7d7b/1/hls/manifest-hd-wifi.m3u8

How This Massive NYC Health System Changed Its Business Model

"The economic implications for the U.S. are profound," said Greg Case, CEO of Aon.

https://m.wsj.net/video/20250709/57231b7d-6d25-4c2e-ae5c-f0b6a6299196/1/hls/manifest-hd-wifi.m3u8

Why Aon's CEO Is Betting on GLP-1 and Other Weight-Loss Meds

"It creates opportunity, which is terrific, but it also creates volatility," said Greg Case, CEO of Aon, talking about the connectivity and complexity underpinning today's business environment.

https://m.wsj.net/video/20250709/c5c85274-4515-484f-8cf4-2a6b3056b927/1/hls/manifest-hd-wifi.m3u8

Why Aon's CEO Thinks Volatility Isn't Going Anywhere

Greg Case, CEO of Aon, explains 4 causes of global volatility the risk manager helps clients navigate.

https://m.wsj.net/video/20250626/65d52c3a-2940-4439-acfa-78e7f53dde15/1/hls/manifest-hd-wifi.m3u8

4 Megatrends That Cause Volatility in the World: Aon CEO

Scott Bok, the former board chair of the University of Pennsylvania, breaks down the financial risks and implications that come with removing tax-exempt status from colleges and universities.

https://m.wsj.net/video/20250709/c8469d5c-8f50-48fd-acb8-97f3b510ea21/1/hls/manifest-hd-wifi.m3u8

Taking Away Tax-Exempt Status: A “Nuclear Weapon Against Universities”

At Barron's

Saira Malik, chief investment officer of Nuveen, makes the case for more gains in 2023.

https://m.wsj.net/video/20230925/4d8aa5ee-77aa-4400-884b-1fafeff893ec/1/hls/manifest-hd-wifi.m3u8

S&P 4700?

David Bailin, chief investment officer of Citi Global Wealth, offers his take on the latest IPO activity and what it says about the strength of capital markets.

https://m.wsj.net/video/20230925/5f4d4a28-d83a-40e3-ad94-28bc25b1c3bc/1/hls/manifest-hd-wifi.m3u8

IPOs: Making a Comeback

Chris Harvey, head of equity strategy at Wells Fargo Securities, explains what would make him more bullish on stocks and when he sees a Fed rate cut coming.

https://m.wsj.net/video/20230918/1f534ddf-5da9-4d1d-9926-fda63e90468e/1/hls/manifest-hd-wifi.m3u8

Cuts on the Horizon?

Tom Kennedy, chief investment strategist for J.P. Morgan Global Wealth Management, explains why he thinks concerns around a slowdown in China are overblown.

https://m.wsj.net/video/20230918/09304272-5f0c-49df-892a-3a3d4622c9c3/1/hls/manifest-hd-wifi.m3u8

Evaluating China Risk

Liz Young, head of investment strategy at SoFi, discusses how market moving the August inflation data could be.

https://m.wsj.net/video/20230911/50b8c6b4-8fd3-4d6f-adff-dd0a024a57d7/1/hls/manifest-hd-wifi.m3u8

Inflation in the Spotlight

Lindsey Piegza, chief economist at Stifel, offers her take on the biggest risks to the economy right now.

https://m.wsj.net/video/20230911/cac885e4-b322-40f8-876c-ebd443fe9d29/1/hls/manifest-hd-wifi.m3u8

Assessing Economic Headwinds 

Dan Ives, managing director and senior equity analyst at Wedbush Securities, explains why he thinks Apple will continue to be a market leader.

https://m.wsj.net/video/20230905/1a48f030-5a5a-401c-a571-ec9115a0155e/1/hls/manifest-hd-wifi.m3u8

Prove-me Moment

Ross Mayfield, investment strategy analyst at Baird, highlights bullish catalysts that could drive the market higher between now and year-end.

https://m.wsj.net/video/20230905/729974df-4594-4fc6-a385-5457b1d87e32/1/hls/manifest-hd-wifi.m3u8

Gearing up for a Rally

Matthew Luzzetti, chief U.S. economist at Deutsche Bank, discusses what’s next for the Federal Reserve and the economy.

https://m.wsj.net/video/20230501/7264fcc9-eea9-4d99-b839-4cd4c20500c9/1/hls/manifest-hd-wifi.m3u8

Recession Ahead 

MarketBrief | Clips

MarketBrief Clips

David Bailin of Citi Global Wealth and Saira Malik of Nuveen debate the probability of a recession and discuss where they’re finding opportunities in equities and fixed income.

https://m.wsj.net/video/20230925/a61dd831-40b8-4727-934f-077d2b880711/1/hls/manifest-hd-wifi.m3u8

Investing in a Slowing Economy 

Take stock of your investments in less than 10 minutes with new show from Barron’s and MarketWatch.

Chris Harvey of Wells Fargo Securities explains why he believes the Federal Reserve is done hiking interest rates while J.P. Morgan Global Wealth Management’s Tom Kennedy makes the case for multi-asset investing.

https://m.wsj.net/video/20230918/84e9a4a4-4e50-4b7b-934c-9a532f9803fc/1/hls/manifest-hd-wifi.m3u8

Rate Hikes in the Rearview?

Lindsey Piegza of Stifel discusses the upside risks for inflation while SoFi’s Liz Young explains why she’s cautious on the market through year-end.

https://m.wsj.net/video/20230911/395ecb74-e349-45b0-a6b8-f91b8874aaf8/1/hls/manifest-hd-wifi.m3u8

Pricing Pressure & Frothy Valuations

Baird’s Ross Mayfield makes the case for a better than expected September for stocks while Dan Ives of Wedbush Securities explains why big tech can rally another 15%.

https://m.wsj.net/video/20230905/156bf778-e13d-41ef-b750-55e2ef1c0162/1/hls/manifest-hd-wifi.m3u8

September to Remember? 

Kristen Bitterly of Citi Global Wealth Management explains why the strong start to the year is nothing more than a bear market rally while Eric Winograd of AllianceBernstein offers his outlook for the Fed, inflation, and the labor market.

https://m.wsj.net/video/20230220/ae07e591-f017-4e82-babb-c80144e7d42f/1/hls/manifest-hd-wifi.m3u8

Time to be Skeptical?

Anastasia Amoroso of iCapital explains why she thinks the stock market rally is nearing a ceiling while U.S. Bank Wealth Management’s Lisa Erickson discusses where she’s finding investment opportunities in an uncertain environment.

https://m.wsj.net/video/20230213/61be15a3-f5ac-4a25-b944-edd15e605e30/1/hls/manifest-hd-wifi.m3u8

Hitting a Wall

Jack Manley of J.P. Morgan Asset Management explains why now is the time to leg back into risk assets while BlackRock’s Rick Rieder offers his top fixed income opportunities.

https://m.wsj.net/video/20230206/0be0daa9-d29a-4350-b277-a9ee6ed9a2ea/1/hls/manifest-hd-wifi.m3u8

Two Ways to Play

Amid impressive January gains, Cameron Dawson of New Edge Wealth discusses how she’s positioning her portfolio and Mark Zandi of Moody's Analytics explains why he thinks the economy can still avoid a recession.

https://m.wsj.net/video/20230130/a8c37d62-592b-4830-9466-65c3824205fe/1/hls/manifest-hd-wifi.m3u8

Gauging Upside Potential

Mike Schumacher of Wells Fargo Securities explains why he’s nervous about stagflation while Sylvia Jablonski of Defiance Investments offers her top portfolio picks.

https://m.wsj.net/video/20230123/1e752a76-b7d4-4802-821a-837d6176f979/1/hls/manifest-hd-wifi.m3u8

Wall Street’s Biggest Risk

MarketBrief | Full Episodes

MarketBrief Full Episodes

After 10 straight hikes, the central bank switched gears and opted to keep rates steady. But that doesn't mean the Fed's inflation fight is over.

https://m.wsj.net/video/20230616/9dce6e5c-4c62-4aa6-b432-d3407ac41aea/1/hls/manifest-hd-wifi.m3u8

The Fed's Rate Pause, Explained

A publicly traded company can increase it's number of shares available by splitting its stock. Here's why companies may do it and how it affects investors.

https://m.wsj.net/video/20221115/f37dedad-4403-4f6d-bd22-067d0fb148df/1/hls/manifest-hd-wifi.m3u8

Stock Splits Are Big This Year. Here's What They Mean for Investors.

Here's why a publicly traded company may decide to go private and what it means for its shareholders.

https://m.wsj.net/video/20221025/9fb3fa20-e2ac-485b-aa4d-8fcf3ebd3151/1/hls/manifest-hd-wifi.m3u8

What Happens When a Stock Goes Private?

What Happens When a Public Company Goes Private?

When saving for retirement, there are many different accounts and tax strategies to consider. Here's how to tell if a Roth IRA conversion could be right for you.

https://m.wsj.net/video/20221021/624f992c-db58-4144-93cc-b888c6948059/1/hls/manifest-hd-wifi.m3u8

What to Know About Roth IRA Conversions

As recession fears loom, here are three ways investors can prepare and protect their portfolios.

https://m.wsj.net/video/20221020/5d94fa79-7b6d-4c51-8ac7-8c523c99d487/1/hls/manifest-hd-wifi.m3u8

Preparing Your Portfolio for a Recession

Retiring abroad could lower your cost of living, so you can make your savings go further in your golden years. But a permanent move to a new country could be more complicated than you think. Here's what you should know.

https://m.wsj.net/video/20220823/7a028383-44a0-4957-a070-0018f046ec97/1/hls/manifest-hd-wifi.m3u8

Thinking Of Retiring Abroad? Here's What to Consider.

Billionaire-backed space companies have made space tourism a reality. How to participate in a potential private-sector space boom.

https://m.wsj.net/video/20220818/99bac587-9be5-48e6-9376-48f3bb8d55cf/1/hls/manifest-hd-wifi.m3u8

How To Invest In Space Tourism

When you hear the words 'electric vehicle', you might immediately think 'Tesla'. But as more automakers enter the EV competition, Tesla might have trouble holding its lead. Here's what investors need to know.

https://m.wsj.net/video/20220722/111776c7-d9d2-4cd2-8194-4c58b0cb7e57/1/hls/manifest-hd-wifi.m3u8

Is Tesla Miles Ahead of Others in the Electric Vehicle Race?

Chinese tech company DiDi Global, which runs a ride-sharing app, has announced it plans to delist from the New York Stock Exchange. Investors are watching and waiting to see what other Chinese giants with U.S. listings, like Alibaba and JD.com, will do. Here's what delisting entails.

https://m.wsj.net/video/20220722/eacf026e-7303-4eb7-80ab-3e2344e2b120/1/hls/manifest-hd-wifi.m3u8

What Happens When a Stock Delists?

Barron's Explains

CEO Cristiano Amon has a plan to shrink Qualcomm’s reliance on phones and grow its role in AI, cars, and beyond. Investors are skeptical—should they be?

https://m.wsj.net/video/20241127/99579ccd-a5c1-4acc-ac31-32469f7d8b1c/1/hls/manifest-hd-wifi.m3u8

What's Next for Qualcomm?

On the Barron's Streetwise Podcast, Barron’s senior writer Al Root sits down with Jack Hough to discuss Toyota’s recent success with hybrids, the coolest cars at the New York Auto Show, and what’s ahead for Tesla stock.

https://m.wsj.net/video/20240329/f163bbd7-0cb6-4c6f-b7f9-a85ae5cd2553/1/hls/manifest-hd-wifi.m3u8

Is Electric Vehicle Demand Cooling Off? 

On the Barron’s Streetwise podcast, Rystad Energy’s Alexandre Ramos Peon discusses how U.S. oil producers have boosted profitability and production despite fewer wells.

https://m.wsj.net/video/20240326/0a4b30c7-379c-460f-abc3-838a7f1eb1a9/1/hls/manifest-hd-wifi.m3u8

The Outlook for Oil

On the Barron’s Streetwise Podcast, Jack Hough pushes back against one of Bitcoin’s most popular valuation models.

https://m.wsj.net/video/20240318/b38cc34a-5064-4a6a-a47c-4c855de11973/1/hls/manifest-hd-wifi.m3u8

Bitcoin as 'Digital Gold' 

On the Barron’s Streetwise podcast, Raphael Zagury of Swan Bitcoin shares his bitcoin price model with Associate Editor Jack Hough.

https://m.wsj.net/video/20240312/c0acb0bf-e4e3-46ca-8fd5-13af6fa401e5/1/hls/manifest-hd-wifi.m3u8

The $600,000 Case for Bitcoin

Kathy Jones, Chief Fixed Income Strategist at Schwab, says it might not matter. Plus, the outlook for yields and the national debt.

https://m.wsj.net/video/20240305/0505813c-e38b-47cb-ade2-e7c3aff68dbd/1/hls/manifest-hd-wifi.m3u8

Bond Funds or Individual Bonds?

Brian Niccol on developing new customer favorites, taking menu tips from TikTok, and the outlook for growing the business.

https://m.wsj.net/video/20230725/dec91556-4dbe-49e6-85d9-ed0e8233ac02/1/hls/manifest-hd-wifi.m3u8

Chipotle's CEO on How He Plans to Double the Business. Again.

Jim Farley on competing with Tesla, and why Ford is favoring Level 3 autonomy over full self-driving capability.

https://m.wsj.net/video/20230519/9aa4288a-39a1-4fb8-8b9d-3be0c58adc18/1/hls/manifest-hd-wifi.m3u8

Ford CEO On the Outlook for EVs and Robo Cars

J.P. Morgan Asset Management's David Kelly says inflation is like a rollercoaster: It will come down again.

https://m.wsj.net/video/20230505/5d8d3d70-598d-4ee4-a76e-21381c911e40/1/hls/manifest-hd-wifi.m3u8

Inflation, Attractive Bonds, and Value Abroad

Barron's Streetwise

Stocks are expensive, risks abound, and AI is about to change the world. Other than that, building a calamity-proof retirement portfolio should be a cinch. Tune in as two veteran money managers size up the markets and share their investment ideas.

https://m.wsj.net/video/20250211/17a5e7d6-7c36-44b0-a35e-bf5ac3a24194/1/hls/manifest-hd-wifi.m3u8

Saving for a Sunny Day

Research shows that people greatly underestimate the healthcare costs they’ll face in retirement. Learn from experts how to estimate those costs, prepare for potential long-term care needs, and manage healthcare expenses in retirement.

https://m.wsj.net/video/20250211/e7c022d9-badf-4e95-8e7c-0b6fce9f7823/1/hls/manifest-hd-wifi.m3u8

Are You Fiscally Fit?

Surging power demand, new energy sources, and growing competition have spurred the utility industry to become more innovative than ever before. Our panelists will unpack the changes afoot and explore what lies ahead for companies, customers, and investors.

https://m.wsj.net/video/20240917/001ea098-1fcc-4da5-9f0e-a3b149bbb2fb/1/hls/manifest-hd-wifi.m3u8

Not Your Father's Utility

Modernizing America's grid will take creativity and money -- lots of money. Learn how players across the power sector can achieve their electrification goals and serve new customers without breaking the bank for consumers.

https://m.wsj.net/video/20240917/bd6bd43a-bb07-4b7f-9d1c-6ae04220bea9/1/hls/manifest-hd-wifi.m3u8

Ready for a Revamp?

The launch this year of Bitcoin ETFs has made it easier for investors to buy and trade the cryptocurrency. But is that a wise move, and if so, how much crypto should you own?

https://m.wsj.net/video/20240529/cbb77f15-ef70-445d-85ae-5f02c24ea1ef/1/hls/manifest-hd-wifi.m3u8

Investing in Cryptocurrencies

Bitcoin and other digital currencies reside on software networks that aim to revolutionize everything from finance to art. Barron's talks to industry experts about the outlook for blockchain technology and its potential uses.

https://m.wsj.net/video/20240529/8f60a5ea-6de4-4c3c-b7c2-12b11aaa99f3/1/hls/manifest-hd-wifi.m3u8

Is Crypto Really a Game-Changer?

Persistent inflation means retirement savings don't go as far as they once did. We discuss the best inflation hedges, and how retirees can benefit from higher-for-longer interest rates.

https://m.wsj.net/video/20240429/69577ad6-cbaf-4d34-96f1-c42136e26aa2/1/hls/manifest-hd-wifi.m3u8

Protecting Your Nest Egg from Rising Prices

The impact of inflation is felt unevenly across the economy and markets. Learn which industries, and companies do best in a “sticky” inflation era, and how fixed income, alternative assets, and gold can help investors hedge against further price growth.

https://m.wsj.net/video/20240429/bfee3cb8-715f-4323-929f-43a73fd58877/1/hls/manifest-hd-wifi.m3u8

Don’t Trim Your Inflation Hedges

Science, tech, and better healthcare delivery are helping people live longer and improving quality of life. Two healthcare investment experts tell us about some of the most promising developments in medicine, and the companies behind them.

https://m.wsj.net/video/20240305/33bed2b1-bdef-401f-bb72-18f7a43f2548/1/hls/manifest-hd-wifi.m3u8

Longevity: An Investor's Playbook

Barron's Roundtable

Barron's Advisor The Way Forward

Investing in Tech

Barron's Investing in Tech Clips

A Better Economy & Wealth Gap Events

Wealth Gap

Level Up

Barron's Events

Back to Business

Great Investors

MarketWatch

Video Center - Barron's home

Electric vehicle manufacturers like Lucid, Lordstown Motors and Faraday Future were big winners of the stock boom two years ago. Now all three companies’ shares have fallen dramatically. WSJ's Dion Rabouin and George Downs discuss why. Photo illustration: David Fang

https://m.wsj.net/video/20231229/680ae57d-0e3f-4c34-951e-30ea04517c7f/1/hls/manifest-hd-wifi.m3u8

Why Electric Vehicles Companies Are Hanging by a Thread

American electric vehicle companies were the biggest things since sliced bread just a couple years ago. Names like Lordstown Motors, Fisker, and Nikola were once hailed as the next big thing. The heir apparent to Tesla and the companies that were gonna usher in the next wave of the American car. Well, that hasn't happened at all. EV companies that had valuations that rivaled American auto giants Ford and GM are now on the verge of seeing their stock prices go to zero. I'm going to explain what's happening to these high flying electric vehicle companies, why many of them are on the verge of insolvency and what this means for the future of the American car. Let's get into it. What's happening to American EV companies? Tesla has done extraordinarily well. It's the most valuable car company in the world, and its stock is up more than 100% year to date. But the other EV companies have fallen apart over the past year or so. One extreme example, hydrogen electric vehicle startup Nikola had a valuation of nearly $29 billion in 2020 that made it one of the most valuable car companies in the US. Not anymore, Nikola stock has fallen by around 95% and the company is worth around a billion dollars today. Its stock has never fully recovered from a short sellers report filled with accusations, including against founder Trevor Milton. He was convicted of fraud and recently sentenced to four years in prison, but Nikola hasn't even been the worst performing EV stock. Companies like Lordstown, Faraday Futures and Proterra have all seen their stocks fall by 99% since going public. Short sellers who make investments that company stock prices will fall, have piled in and gotten paid. Faraday, Nikola and Proterra have been the best performing short bets in the automotive sector all year. My colleague George Downs covers transportation and he says,

Making cars is hard. There is no simpler way I can say that.

George, what's going on in the EV space?

So when a lot of these companies went public in 2020, 2021, many legacy automakers had yet to release their kind of flagship EV models. So production of Ford's F-150 Lightning hadn't started yet. These startups didn't have any existing internal combustion engine production lines that they needed to maintain or pivot from. So it seemed that they could possibly bring an EV to market quicker and easier than some of the legacy car companies. The problem is whether you're a young startup or an old automaker, engineering is engineering, manufacturing is manufacturing, and supply chains are supply chains, there are no real shortcuts. And even Tesla's CEO Elon Musk said that the company went through manufacturing hell in 2017, supply chains got snarled for pretty much every automaker and startups struggled to get the parts that they needed. And every day that you're not getting a vehicle off the production line and selling it to customers is a day that you're potentially losing money.

But data show Americans do want electric cars. EV sales continue to rise in the US and are seeing exponential growth, Analytics firm, Cox Automotive estimates that around 300,000 electric vehicles were sold in the third quarter, making up around 8% of all auto sales. That's more than double the number of sales and shares seen in the third quarter of 2021 and four times the sales and shares seen in the third quarter of 2020. So what does the future look like for electric vehicles? A report from our colleague, Amrith Ramkumar and Shane Shifflett recently found that of 43 public electric vehicle companies they studied, 18 were on track to run out of cash by the end of next year if they didn't cut costs or raise new capital and seven of those had just weeks of cash on hand. When contacted by the journal, several companies said they raised or are planning new financing and or cutting costs. So is it game over for EV companies here in the US?

I think what you're seeing now is the hype starting to fade away, but reality setting in. So the companies that are in a stronger position are the ones that have actually managed to get their EVs into the hands of paying customers. But even the big players are reassessing. GM abandoned its target to build 400,000 EVs by 2024, and Ford has pushed back its targets as our latest WSJ reporting points out. There's still a bunch of companies losing a lot of money, so it's likely there's gonna be more bloodshed.

Why Short Sellers Are Targeting Struggling EV Companies

Dion Rabouin breaks down all things finance, taking a deep dive into what’s making money move and why it matters.

Why Short Sellers Are Targeting Struggling EV Companies

Dion Rabouin

Up Next

At Barron's

View All

MarketBrief Clips

View All

MarketBrief Full Episodes

View All

Barron's Explains

View All

Barron's Streetwise

View All

Barron's Roundtable

View All

Barron's Investing in Tech Clips

View All

Wealth Gap

View All

Level Up

View All

Barron's Events

View All

Back to Business

View All

Great Investors

View All

MarketWatch

View All