Hyundai's $51 Billion EV Investment Impact on Rivian and Lucid

Monday, 1 April 2024, 18:33

Hyundai's $51 billion investment in EVs and software-defined vehicles is actually good news for smaller automakers like Rivian and Lucid. Despite challenges in the EV industry, the industry's progress in bringing down prices and expanding infrastructure is beneficial for these companies. On the flip side, recent actions by Hertz and Toyota pose threats to the long-term visions of Rivian and Lucid.
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Hyundai's $51 Billion EV Investment Impact on Rivian and Lucid

Hyundai's Big Splash

Hyundai plans to spend $51 billion over the next three years to enhance its electric vehicle capabilities and hire new employees. More than half of the investment will focus on researching EVs and developing new assembly lines.

For pure EV companies like Rivian and Lucid, Hyundai's investment in EV infrastructure is crucial for growth and competition.

Hertz Ends EV Gamble

After bankruptcy, Hertz has begun selling off EV fleet due to weak demand and high depreciation. This situation is bad news for Rivian and Lucid, as they face challenges with demand and competition.

Toyota's Reluctance

Toyota's Chairman believes internal combustion engines will dominate the market, which could hinder the prospects of Rivian and Lucid in the EV sector.

Perspective

Investors should view Hyundai's investment as positive for Rivian and Lucid, with a focus on reducing battery costs and improving charging infrastructure.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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