Over the past year, the electric vehicle (EV) sector, particularly companies once hailed as the next Tesla, such as Rivian and Lucid, have faced significant challenges, leading to a sharp decline in investor confidence and stock values. Tesla, Rivian, and Lucid have seen their share prices tumble, with Tesla down 6%, Rivian down 46%, and Lucid also experiencing significant losses. This downturn is attributed to a combination of factors including cooling demand for EVs, high interest rates affecting affordability, and production challenges. Furthermore, Tesla's reliance on regulatory credits and international income, particularly from China, with an EPS less than $2, has been highlighted as a concern. The situation is exacerbated by a broader skepticism towards the EV market's potential, with some analysts questioning the previously optimistic projections for the sector. Notably, Rivian and Lucid are attempting to navigate these challenges by seeking to cut costs and potentially moving downmarket to compete more effectively.