EV startups conserve cash as make-or-break moment approaches. Here's where everyone stands

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The game for EV startups is now a grim one: Can the companies reach profitability before running out of cash?

Electric vehicle startups are approaching a make-or-break moment. As legacy automakers increasingly ramp production of all-electric vehicles, cushioned by the profits of gas-powered models, a handful of EV startups are scrambling to conserve cash and stay in the mix. The last few years saw a wave of EV startups hit the public markets, all hoping to catch some of the lightning that had made Tesla 's stock surge. Many did see soaring share prices – for a while.

Fisker expects a positive gross margin of between 8% and 12% this year, thanks to its contract-manufacturing model. While it's likely to need more cash at some point, that shouldn't be hard to raise – assuming both production and sales of the Ocean go smoothly over the next several months. Or as Evercore ISI analyst Doug Dutton wrote before Fisker's earnings report, "Fisker is beginning to turn into a story of binary and 'show me' outcomes.

 

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