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00:00 The past years were positive for the electric car companies
00:07 because the interest rates were low.
00:10 We had a lot of Wall Street investors towards these companies
00:16 and because we had a large supply of these companies
00:20 in an attempt to guarantee a larger market share in this sector.
00:25 But today, the economic environment is very different
00:29 especially because the interest rates are higher
00:32 and the ability of these companies to sustain themselves is lower
00:35 while in the past period, they were forced to invest a lot
00:40 which affected the volume of liquidity available to them.
00:44 How do companies like Rivian, Lucid and Nikola deal with these situations?
00:48 They work to reduce costs and to facilitate employees.
00:52 If we look at the available liquidity figures for these companies
00:56 which usually do not include only cash liquidity
01:00 but also include short-term investments
01:02 which have a high liquidity rate and can be converted into cash quickly
01:08 and the real cash liquidity figures.
01:10 Rivian has the largest cash liquidity of 7.8 billion dollars
01:15 which is a very positive thing for investors.
01:18 Usually, investors look at the budgets of the emerging companies
01:22 or specifically in the electric car sector
01:25 and look at the available cash liquidity.
01:28 Because the larger the liquidity, the more the companies have the ability to invest
01:34 to expand their business, to exit and finance new models of cars
01:41 and all of this is a positive thing.
01:43 But today, for these companies, we had an increase in the cash burn rate
01:49 over the past few years because they were looking for a market share guarantee
01:55 to surprise at the beginning of this year
01:58 that we have a decline in demand for electric cars
02:02 and we also have a very competitive environment.
02:05 The increase in costs was a matter that put pressure on the shares of these companies
02:11 and this forced them to implement procedures such as the employees' resignation
02:16 or even the retirees' resignation.
02:19 Lucid has raised a billion dollars from the Saudi General Investment Fund
02:23 and it is the largest contributor to the company.
02:26 Some of them focused on commercial vehicles and resorted to lower costs.
02:31 Notice how these companies were on a retreat from the beginning of this year.
02:36 If a company the size of Tesla was under great pressure from the beginning of this year
02:42 because of the fear of investors from the discovery of China
02:46 on the one hand, from the decline in Chinese demand, from the sharp competition in China
02:51 and on the other hand, also from the issue of the overall economic environment.
02:56 These companies are considered weaker than Tesla to some extent
03:00 and therefore this is what is exposed to increased pressure
03:03 especially because investors are afraid of these companies' ability to build a reputation
03:08 and to finance their investments and exit and finance new models that are suitable
03:14 in the time that we see a retreat in spending on electric cars.
03:19 Under the pressure of the competition, many companies are on the verge of bankruptcy today.
03:25 We are talking about the companies of the electric cars that were established.
03:29 Some of them announced a temporary suspension of the production of vehicles
03:33 and are on the verge of making a request to protect them from bankruptcy.
03:38 The reason is the decline in demand and the lack of sufficient liquidity
03:42 to adapt to this economic environment and a very competitive environment.
03:47 Today in this sector, the one who can lower its prices more
03:50 is the one who can win the highest market share.