3B Raise/Offering

[NoseyReporter]

EV maker Lucid announces $3 billion raise from Saudi public wealth fund and stock offering

Lucid is raising $3 billion via a secondary stock offering, including about $1.8 billion from the Saudi fund that controls the automaker.

www.cnbc.com

Well... I didn't expect this to happen until later this year.

The timing seems bizarre to me.

Good to see the PIF is still a partner though.

 

[RM-S8]

EV maker Lucid announces $3 billion raise from Saudi public wealth fund and stock offering

Lucid is raising $3 billion via a secondary stock offering, including about $1.8 billion from the Saudi fund that controls the automaker.

www.cnbc.com

Well... I didn't expect this to happen until later this year.

The timing seems bizarre to me.

Good to see the PIF is still a partner though.

I think the timing is excellent.

 

[thecodingart]

Frankly, now is the right time to do it. This was good news.

 

[NewEnglander]

Great news indeed. It will take a lot of uncertainty out and facilitate increase in sales.

 

[Genghis]

Good news to increase the runway but still doesn't solve the production, delivery, and demand issues. I actually want them to spend a significant chunk of it on proper marketing to get the brand and value proposition to the right audience that would actually buy these cars. Range, power, luxury, tech... None of their current marketing actually promoted this and over half my friends and neighbors who could afford or would want one knows about it and the offerings until I explain why I bought one.

 

[Volund]

Good news to increase the runway but still doesn't solve the production, delivery, and demand issues. I actually want them to spend a significant chunk of it on proper marketing to get the brand and value proposition to the right audience that would actually buy these cars. Range, power, luxury, tech... None of their current marketing actually promoted this and over half my friends and neighbors who could afford or would want one knows about it and the offerings until I explain why I bought one.

I feel like like they could save a lot of money as cable TV or advertising methods isn't as good as it once was. Too many Avenues with streaming to cover a good market audience. Billboards and other older methods just isn't the same anymore. I feel like word of mouth, reviews, and YouTube/influencer is probably a better way to get the brand name out.

I advertise my GT as much as I can when driving publicly. My wife hates it, but I consider it a service to the brand as I love the company!

 

[Rob Stark]

So there is enough cash to get to Jan 1,2025?

Agree the sooner the better for the capital raise. You don't want to wait till the house is on fire and the wolves are at the door.

 

[NoseyReporter]

So there is enough cash to get to Jan 1,2025?

Agree the sooner the better for the capital raise. You don't want to wait till the house is on fire and the wolves are at the door.

Give or take. Not sure how Gravity production will affect burn rate, and whether or not that was taken into consideration when providing the end of Q1 2024 ex date prior to this raise.

I personally thought they'd at least try to raise around some hype; IE Gravity announcement/blow our quarter, vs a lull but what do I know.

 

[NewEnglander]

With this $3B, they should be good at least till end of Q4 2025. Ample time to get traction with Gravity as well as Air. Lucid just needs to double down on software. All issues highlighted in myriad threads including @Bobby ’s list, when addressed, will make it a pretty desirable EV. At some point, I expect Tesla to come in with a new version of S/X. The current versions are at EOL. They will try to benchmark with Air/Gravity build quality and likely price it much higher at above 120k. At that point, if Lucid software, besides Dream drive pro, is at par, then Lucid will do well.

 

[RM-S8]

So there is enough cash to get to Jan 1,2025?

Agree the sooner the better for the capital raise. You don't want to wait till the house is on fire and the wolves are at the door.

Just curious, are you pro, or against the Lucid?

 

[Bill55]

EV maker Lucid announces $3 billion raise from Saudi public wealth fund and stock offering

Lucid is raising $3 billion via a secondary stock offering, including about $1.8 billion from the Saudi fund that controls the automaker.

www.cnbc.com

Well... I didn't expect this to happen until later this year.

The timing seems bizarre to me.

Good to see the PIF is still a partner though.

Timing makes sense to me. Who wants to spend a 150k on a car or 250k on a Sapphire if you are worried the company may run out of cash. People need confidence to turn deposits into deliveries.

 

[CraZ8]

It seems to me that Tesla did not turn a profit for what the first 9 years or so from the original roadster through the S,X and early 3 production. Give lucid a decreasing burn rate for at least the next 5 years before panicking

 

[Bill55]

It seems to me that Tesla did not turn a profit for what the first 9 years or so from the original roadster through the S,X and early 3 production. Give lucid a decreasing burn rate for at least the next 5 years before panicking

Tesla did not have all the legacy auto manufacturers spending billions on EV’s. Lucid does not have the time Tesla had.

 

[quantum]

I feel like like they could save a lot of money as cable TV or advertising methods isn't as good as it once was. Too many Avenues with streaming to cover a good market audience. Billboards and other older methods just isn't the same anymore. I feel like word of mouth, reviews, and YouTube/influencer is probably a better way to get the brand name out.

I advertise my GT as much as I can when driving publicly. My wife hates it, but I consider it a service to the brand as I love the company!

Do the same, and I have been making sure the car is nice and shiny! Just got a compliment today, they didn't even know what Lucid was and this was in Scottsdale.

 

[quantum]

Tesla did not have all the legacy auto manufacturers spending billions on EV’s. Lucid does not have the time Tesla had.

You can also argue Tesla was fighting a monumental battle against ICE, now that ICE has been dethroned, easier to sell EV's....more competition but greater acceptance.

 

[quantum]

With this $3B, they should be good at least till end of Q4 2025. Ample time to get traction with Gravity as well as Air. Lucid just needs to double down on software. All issues highlighted in myriad threads including @Bobby ’s list, when addressed, will make it a pretty desirable EV. At some point, I expect Tesla to come in with a new version of S/X. The current versions are at EOL. They will try to benchmark with Air/Gravity build quality and likely price it much higher at above 120k. At that point, if Lucid software, besides Dream drive pro, is at par, then Lucid will do well.

I don't think Tesla will upgrade Model S/X.....hardly any sales

 

[Tâm]

I don't think Tesla will upgrade Model S/X.....hardly any sales

That is consistent with what Elon Musk said in 2019:

"They're really niche products...I mean, they're very expensive, made in low volume. To be totally frank, we're continuing to make them more for sentimental reasons than anything else. They're really of minor importance to the future."

 

[Rob Stark]

That is consistent with what Elon Musk said in 2019:

"They're really niche products...I mean, they're very expensive, made in low volume. To be totally frank, we're continuing to make them more for sentimental reasons than anything else. They're really of minor importance to the future."

Elon is a technical genius but human psychology is his blind spot.

Especially in absence of traditional marketing, Model S and Model X are the best advertising for Model 3 and Model Y.

He has recently said they will "try advertising" but they will still not do traditional marketing campaigns.

Many a Model 3 purchase decision start with watching Utube videos of Model S Performance smoking a Ferrari and/or Lamborghini.

 

[Rob Stark]

Just curious, are you pro, or against the Lucid?

Just curious what makes you think I might be against Lucid?

 

[xponents]

Just curious what makes you think I might be against Lucid?

… some of your other posts suggest that. Personally though, im neutral on anybody.