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By Nick Carey, European Autos Correspondent

Greetings from London, where the sun is making a rare appearance today. While most of the world experienced the hottest July on record, Britain has seen quite the opposite, with weather just like the summers of my childhood – wet and chilly.

The contrast in the fate of electric vehicle startups is also just as stark. Buoyed by investors seeking the next Tesla in the era of cheap money, a bevy of EV startups went public a couple of years ago.

Touting big plans and boasting hefty market caps, the harsh reality is that mass producing vehicles is difficult and expensive. Investor interest has waned and some startups like Lordstown Motors have filed for bankruptcy, while others like Arrival or Canoo have warned they may run out of cash.  

Yet as we will see from the news in autos world today, for some EV startups there are hopeful signs they could be on the road to sunnier weather: 

• • Ups and downs in EV startup world 
  • Dump that contract in the trash 
  • Li Auto wants to overtake Mercedes, BMW and Audi 

Rivian: we have cash through 2025

After struggling with cash burn and production issues, EV startups Rivian and Lucid provided investors some reassurance this week by saying they have enough cash to make it to 2025.  

Lucid received a lifeline in June with a $3 billion stock offering led by its main shareholder, Saudi Arabia’s Public Investment Fund, which has provided it with the kind of funding other startups can only dream of at this stage.  

While reporting results, Lucid not only stuck to its annual production target but said it has cash to start making an SUV next year and enough left over to make it into 2025. 

Rivian, which has fought to conserve cash, upped its full-year production forecast and said it has sufficient cash to see it through 2025. After taking a hammering, the company’s stock is up 35% year-to-date as it works its way through supply chain and production challenges. 

But EV startup Proterra, which makes electric buses and battery packs, filed for Chapter 11 bankruptcy protection on Monday. When Proterra hit the market in 2021, it was valued at $1.6 billion, but as CEO Gareth Joyce noted the company “faced various market and macroeconomic headwinds that have impacted our ability to efficiently scale.” 

UAW President Shawn Fain

Contract talks between the Detroit Three and the United Auto Workers (UAW) have for decades been steeped in symbolism, especially the handshake between union officials and automaker executives before the hard slog at the negotiating table commences.  

But the UAW skipped the handshakes this year and union president Shawn Fain opted for an entirely different symbolic act on Tuesday when he angrily tossed contract proposals from Stellantis in a trash can, citing numerous concessions the automaker seeks from workers. 

During an online chat, Fain called Stellantis’ proposed cuts to health-care coverage, fewer vacation days for new hires, employer cuts to 401(k) contributions a “slap in the face” and said they belong in the trash.  

The UAW meanwhile has a list of demands that includes pay raises of more than 40% over four years. 

This year’s talks were always expected to be tough. Fain’s trash can talk this week shows just how much distance remains between both sides. 

Li Auto aims to take on German luxury giants  

Up and coming Chinese automaker Li Auto plans to outsell BMW, Mercedes-Benz and Audi in China in 2024 as it speeds up the rollout of new models and ramps up car production. 

CEO Li Xiang told investors the company wants to be the “No.1 premium car brand in China in 2024 in terms of sales.” The company will launch four new models next year including three EVs, he said. 

Western automakers have come under pressure from rising Chinese brands, who are swift to come to market with new models laden with consumer-friendly software.

A price war started by Tesla in January has also put pressure on Chinese EV startups like Nio and Xpeng. 

Tesla finance chief Zachary Kirkhorn stepped down on Monday, surprising analysts who considered the 13-year company veteran a possible successor to CEO Elon Musk. 

Japan’s Honda reported a 78% jump in quarterly profit on Wednesday, boosted by rising sales, especially in the key U.S. market, with an added lift from a weaker yen.Body here

Lyft shares dropped nearly 7% in extended trading on Tuesday as the ride-sharing company signalled it would double down on competitive pricing to catch up with larger rival Uber. 

U.S. auto safety regulators said on Tuesday they were investigating whether 1.1 million older Ram 1500 pickup trucks should be recalled for power steering loss issues. 

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