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What do you want Silvio to address at Lucid's Q3'26 earning Call

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BS8899

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Lucid will likely do their Q3'26 earning call in the 2nd week of November.

What are the key issues this Forum's readers want Silvio to address?
 
raleighone said:
I just heard 300 additional service techs are now authorized to be hired, which is great news for service centers.
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There are nearly 80 positions already posted to Lucid’s website.

BS8899 said:
Lucid will likely do their Q3'26 earning call in the 2nd week of November.

What are the key issues this Forum's readers want Silvio to address?
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0. Supply Chain
1. Build Quality
2. Service & Support
3. Sales & CRM
 
Future of Air. A slide posted on one of the 2.11/ux 3.0 threads listed some meaningful improvements for M28. Would be good to hear some more details if MY 28 will have some broader redesigns.
 
1. Service. Can't build growth on a foundation that is eroding.
2. Air DDP forward pathway
 
raleighone said:
I just heard 300 additional service techs are now authorized to be hired, which is great news for service centers.
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Same I was just at an owners club event and the execs there said there were hiring 100 techs in the Chicago area and opening 2 new service centers. They were also opening a 2nd shift at Goose Island.
 
illopp00 said:
Same I was just at an owners club event and the execs there said there were hiring 100 techs in the Chicago area and opening 2 new service centers. They were also opening a 2nd shift at Goose Island.
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I've heard that they're opening one in Highland Park. Any idea where the other would be?
 
Biggest question for me for the CEO is what's the updated time frame for profitability?

No company, especially car manufacturers can keep burning billions in cash and survive. Regardless of whatever big investors... they all want ROI.
 
Service, service, service. These are expensive cars that invite curiosity. If the build quality is such that cars are going to arrive with a series of quirks, the ability to fix them fast is essential, otherwise you've got 2-3 months of first impressions where, instead of "whoa, what is this incredible car" it's "whoa, why doesn't the window close on your $100,000 car"- and the latter doesn't inspire anyone to buy an Air or Gravity (or Cosmos).
 
I would like information on the next capital raise…..and when production of cosmos will start….start in meaning a real start, that the fake Gravity production that Rawlinson gave us in Dec 2024.

Can you believe it that Rawlinson got a $6 million bonus for that! Any company would get upset with that type of release. Actual real production didn’t start till Q2.
 
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gaskiller said:
I would like information on the next capital raise…..and when production of cosmos will start….start in meaning a real start, that the fake Gravity production that Rawlinson gave us in Dec 2024.

Can you believe it that Rawlinson got a $6 million bonus for that! Any company would get upset with that type of release. Actual real production didn’t start till Q2.
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Sad, but true! The EOY Gravity Picnic event was a farce! Gravity was not ready for Prime Time even 6 months thereafter at the official ramp!
 
Quality control. No Gravity should ever get delivered not fully functioning-especially to YouTubers.
 
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gaskiller said:
Can you believe it that Rawlinson got a $6 million bonus for that!
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Yes. The target was set by the board and he hit it. The alternative would have been to delay the launch and the board clearly did not want that to happen. And through 3 CEO’s the board is unchanged. Expecting a change in the company’s fortune without a change at the board level is burying your head in the sand. Strategy is a function of the board and leadership in all companies. When you’re on your 3rd CEO in 18 months the problem rests with the board. Telling yourself that the new CEO is the one who will finally get things right is a moon shot.

For Napoli the clear test this quarter is showing that the leadership team has made progress on taking the targeted $1.4B of cost out of the business. It’s an incredibly ambitious objective to pull off particularly if you’re trying to shore up the customer service organization. It will be very difficult for Lucid to accomplish any one of their four key pillars without sacrificing another. Cutting cost will come at the expense of service. Investing in service will come at the expense of cost. Same holds true for the quality and talent initiatives. And with inventory rationalization the road gets much tougher. If Lucid can’t sell vehicles without steep discounts they’ll be moving further away from their financial goals not closer to them.

Fresh capital could solve some of those problems but that doesn’t seem to be in the cards short term. And the KSA money seems earmarked on in country cap-ex not operational deficiencies and expenses.
 
Northpointe said:
Yes. The target was set by the board and he hit it. The alternative would have been to delay the launch and the board clearly did not want that to happen. And through 3 CEO’s the board is unchanged. Expecting a change in the company’s fortune without a change at the board level is burying your head in the sand. Strategy is a function of the board and leadership in all companies. When you’re on your 3rd CEO in 18 months the problem rests with the board. Telling yourself that the new CEO is the one who will finally get things right is a moon shot.

For Napoli the clear test this quarter is showing that the leadership team has made progress on taking the targeted $1.4B of cost out of the business. It’s an incredibly ambitious objective to pull off particularly if you’re trying to shore up the customer service organization. It will be very difficult for Lucid to accomplish any one of their four key pillars without sacrificing another. Cutting cost will come at the expense of service. Investing in service will come at the expense of cost. Same holds true for the quality and talent initiatives. And with inventory rationalization the road gets much tougher. If Lucid can’t sell vehicles without steep discounts they’ll be moving further away from their financial goals not closer to them.

Fresh capital could solve some of those problems but that doesn’t seem to be in the cards short term. And the KSA money seems earmarked on in country cap-ex not operational deficiencies and expenses.
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Lucid is in an illogical "Cul-de-sec" vis-a-vis, they launched (and ramped) products (Air and Gravity) before these products were ready. Inevitably, such adventures generate a lot of service calls and SW patches. These triage actions, in turn, suck resources from service and development, hence the vicious cycle. I know there are always market pressure to ramp products quickly to generate revenue, but the C-suit is there to impart its guidance.

Meanwhile, they are trying to cut their burn rate in order to keep the company afloat.

Unless they get a substantial financial infusion (and consequent dilution) or a partnership (e.g., in products or in services), I have a hard time seeing how they navigate through these choppy waters!

By the November earnings call, Silvio and his C-suite would have been at their jobs for 4-6 months. I hope they have a clear game plan!
 
Northpointe said:
Yes. The target was set by the board and he hit it. The alternative would have been to delay the launch and the board clearly did not want that to happen. And through 3 CEO’s the board is unchanged. Expecting a change in the company’s fortune without a change at the board level is burying your head in the sand. Strategy is a function of the board and leadership in all companies. When you’re on your 3rd CEO in 18 months the problem rests with the board. Telling yourself that the new CEO is the one who will finally get things right is a moon shot.

For Napoli the clear test this quarter is showing that the leadership team has made progress on taking the targeted $1.4B of cost out of the business. It’s an incredibly ambitious objective to pull off particularly if you’re trying to shore up the customer service organization. It will be very difficult for Lucid to accomplish any one of their four key pillars without sacrificing another. Cutting cost will come at the expense of service. Investing in service will come at the expense of cost. Same holds true for the quality and talent initiatives. And with inventory rationalization the road gets much tougher. If Lucid can’t sell vehicles without steep discounts they’ll be moving further away from their financial goals not closer to them.

Fresh capital could solve some of those problems but that doesn’t seem to be in the cards short term. And the KSA money seems earmarked on in country cap-ex not operational deficiencies and expenses.
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I disagree about board being responsible for Gravity release farce. Board set a deadline, Rawlinson said it was achieved, but it wasn’t. What he should have done is let the board know vehicle wasn’t ready and forego the 6 million bonus. You are saying Lucid board knows everything about building cars. They take guidance from CEO.
 
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