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EV startups from Lucid to Rivian see demand fade

STORY: Tough times for U.S. electric vehicle startups.

Demand is evaporating as potential customers look for deals or hold off on purchases altogether.

Quarterly reports from luxury sedan maker Lucid, pickup and SUV maker Rivian and electric semi truck maker Nikola all indicated weakening interest for their newer products. Industry experts blame price cuts by industry giant Tesla and the availability of cheaper EV models from traditional automakers.

One exception is Fisker which just launched a more competitively priced SUV but has only produced 56 of them so far.

Recent price cuts from Tesla on its Model Y make it $20,000 -$30,000 cheaper than vehicles from Rivian and Lucid

Analysts and executives of EV startups also say rising interest rates and inflation are cutting into demand.

Lucid reported a slump in reservations while Nikola said demand would not rebound any time soon and Rivan cut its 2023 production citing supply chain issues. It also did not provide current orders.. a number it has updated every quarter.

A venture capitalist who invests in EV-related companies tells Reuters demand for these newer vehicles should improve next year as the supply chain improves.

Shares of Rivian have lost three-quarters of their value over the past year while Nikola is down about 70-percent and Lucid a little less than that.