Tesla Inc (NASDAQ: TSLA) CEO Elon Musk said on Tuesday he believes that electric vehicle startups Rivian Automotive Inc (NASDAQ: RIVN) and Lucid Group Inc (NASDAQ: LCID) are headed toward bankruptcy.
What Happened: The billionaire entrepreneur said that the two firms need to cut costs dramatically to stay out of danger.
'Unless they cut their costs dramatically, they are in deep trouble and will end up in the cemetery like every other company (automotive) with the exception of Tesla and Ford," Musk said in an interview on Tesla Owners Silicon Valley's YouTube channel.
Musk also pointed out that Chrysler and General Motors Co (NYSE: GM) had gone bankrupt in 2008 before getting bailed out by the government. Ford Motor Co (NYSE: F), which also secured bailouts, is in a better financial position because it probably has "a better long-term vision," Musk said.