US electric vehicle startups are facing challenges in a market characterized by steep borrowing costs and high repair expenses. As a result, they are adjusting their production plans and cutting costs to navigate the slump in demand. Tesla, for example, is planning to introduce a new cheaper model to compete with gasoline-powered cars and cheaper EVs from China by mid-2025. Rivian Automative, on the other hand, is focusing on reducing cash burn and upgrading its factories to improve efficiency and cut costs. The company recently introduced smaller and less expensive electric SUVs and crossovers to hasten deliveries. Lucid Group, which has Saudi Arabia’s Public Investment Fund as its largest investor, is forecasting lower annual production than initially estimated as it aims to control costs. The company has also slashed the price of its Lucid Air Pure model and is including incentives such as free scheduled maintenance and charging allowance. Fisker, meanwhile, is facing financial challenges and has issued a going-concern warning. The company has laid off employees and paused investments in future projects until it secures a partnership with a manufacturer. Despite producing over 10,000 vehicles in 2023, Fisker’s flagship Ocean electric SUV saw weak demand, with only about 4,700 deliveries. Finally, Nikola is pivoting its focus to big rigs powered by hydrogen after some of its battery-electric trucks faced recalls due to fires. The company aims to generate truck revenue in 2024 and has a target to sell 450 units this year, including its hydrogen fuel cell electric trucks. Despite the challenges, EV startups continue to innovate and find new ways to compete in the market.