2nd qtr results link with Q and A

The ship has a big hole. Peter refuses to answer what is your best run rate. Estimates drop again in half down to 6k/7k cars in 2022. They fired the previous exec and now things look bad. Why can't they ramp up and make cars in a plant they are already expanding to AMP2? They will have to go from 7k cars in 2022 to 40k/50k cars in 2023...a 6x to 7x increase?

I was a big believer in 2023 and their ability to get all the reservations out in 2023, but after this call I doubt they can unless they get more cash to fund. They are at a critical point and I hope it works, but they might be looking to get acquired by a larger company. The market is run QTR by QTR and your stock price is everything.

Will they figure it out?
 
it seems the market believes in the company. The stock is only down 10% after this negative earnings report and significant guidance reduction. And that 10% is pretty much loss of gains from the prior week.
 
it seems the market believes in the company. The stock is only down 10% after this negative earnings report and significant guidance reduction. And that 10% is pretty much loss of gains from the prior week.
I was about to say the same thing. The stock is still higher than it was a week ago. So the market seems to be okay with the outlook for Q3 and Q4. At least so far. Let's see if it drops further in the next day or two.
 
I was about to say the same thing. The stock is still higher than it was a week ago. So the market seems to be okay with the outlook for Q3 and Q4. At least so far. Let's see if it drops further in the next day or two.
Doubt it, until something big changes, it will stay stagnant until the BBB passes or doesn't. I think that will have a bigger impact that these earnings.
 
Doubt it, until something big changes, it will stay stagnant until the BBB passes or doesn't. I think that will have a bigger impact that these earnings.
Did anyone ask about BBB yesterday on the call? I'm curious what Peter's thoughts were on the possibility of losing that tax incentive. And the projected impact on reservations.
 
The ship has a big hole. Peter refuses to answer what is your best run rate. Estimates drop again in half down to 6k/7k cars in 2022. They fired the previous exec and now things look bad. Why can't they ramp up and make cars in a plant they are already expanding to AMP2? They will have to go from 7k cars in 2022 to 40k/50k cars in 2023...a 6x to 7x increase?

I was a big believer in 2023 and their ability to get all the reservations out in 2023, but after this call I doubt they can unless they get more cash to fund. They are at a critical point and I hope it works, but they might be looking to get acquired by a larger company. The market is run QTR by QTR and your stock price is everything.

Will they figure it out?
As much as I've lost faith in Peter to be actually running the company I do understand why he wouldn't mention the run rate. The moment you put a number to something you're held accountable even if you put conditions on it. If the output drops in any given week the media will run with "Lucid is in trouble" and ignore that the numbers were provided with conditions which in turn, would drive down stock price. When he was asked on the call I was saying to myself "say nothing" "don't do it" "this will come back and bite you on the ass". At the end of the day, he's going to look more like a fool who has no idea how to run a company if they can't achieve the newly revised numbers.

Peter seems to be good when reading off script but he's a blubbering, stuttering mess when he goes off it. He constantly repeats the same thing over and over again. I think he should keep his CTO title (the guy knows his stuff) but they should find someone to replace him as CEO.

As a CEO he should've seen this coming months ago and has only decided to plant himself at the factory now? Lucid has had production output misses all the way back to Q4. A number of people on here have been saying for a while now with Lucid's output they're not going to make the guidance but Lucid left it to the last minute to fess up that they had to do yet another revision. If people outside can predict it then internally everyone knows the same thing but they're holding back from telling the market as long as they can. That's just not good business practice.

Hopefully this is the wake up call that Peter needed as I feel the last 6 months he's been delusional but again, I question whether he is the right person to be both CEO and CTO.
 
Did anyone ask about BBB yesterday on the call? I'm curious what Peter's thoughts were on the possibility of losing that tax incentive. And the projected impact on reservations.
It's a fools errand just like our discussion. Any questions or prediction about a yet to be passed bill would just be silly for an earnings call IMO.
 
As much as I've lost faith in Peter to be actually running the company I do understand why he wouldn't mention the run rate. The moment you put a number to something you're held accountable even if you put conditions on it. If the output drops in any given week the media will run with "Lucid is in trouble" and ignore that the numbers were provided with conditions which in turn, would drive down stock price. When he was asked on the call I was saying to myself "say nothing" "don't do it" "this will come back and bite you on the ass". At the end of the day, he's going to look more like a fool who has no idea how to run a company if they can't achieve the newly revised numbers.

Peter seems to be good when reading off script but he's a blubbering, stuttering mess when he goes off it. He constantly repeats the same thing over and over again. I think he should keep his CTO title (the guy knows his stuff) but they should find someone to replace him as CEO.

As a CEO he should've seen this coming months ago and has only decided to plant himself at the factory now? Lucid has had production output misses all the way back to Q4. A number of people on here have been saying for a while now with Lucid's output they're not going to make the guidance but Lucid left it to the last minute to fess up that they had to do yet another revision. If people outside can predict it then internally everyone knows the same thing but they're holding back from telling the market as long as they can. That's just not good business practice.

Hopefully this is the wake up call that Peter needed as I feel the last 6 months he's been delusional but again, I question whether he is the right person to be both CEO and CTO.
Honest question, but what does a CEO being at the factory do for production? Besides tell people that the person you hired to oversee the factory is mucking it up.
 
Honest question, but what does a CEO being at the factory do for production? Besides tell people that the person you hired to oversee the factory is mucking it up.
In these situations the staff on the frontline typically know that things are a hot mess and most times its a result of bad management. Those people typically don't get access to the CEO so The CEO showing up whilst never a good look can actually be a morale booster to those staff that are passionate to see the company succeed and that he might actually do something beneficial by being onsite to steer the ship right.

Clearly, he saw issues and has decided to change things up but it's probably something that should have been done before the Q1 earnings. They had around 6 months of production behind them and got out very minimal cars.
 
I'm a little shocked that the stock price didn't fall further. Was planning to buy some, but not at today's price with the results discussed yesterday. Having $140k in the car seems like enough risk, or possibly a little too much.
 
it seems the market believes in the company. The stock is only down 10% after this negative earnings report and significant guidance reduction. And that 10% is pretty much loss of gains from the prior week.
This is exactly what I saw too.
 
I have been pointing out that his background at Jag, Lotus and Tesla point to a lack of focus on Quality.

I was actually very encouraged that during the call he basically said, we stopped shipping cars that don't cut it and noting will leave the factory that isn't ok. Let's see.

On the volume, with the new projections, they burped out 20% of annual output in 50% of the year. So they have to get faster as building cars and building them right. I hope they can. I don't blame Peter for not being direct with weekly output. It's too low, his sales translate to 230is a month so under 60 cars a week.

Bringing in folks from low Quality entities like Cry Slur and Generic Motors is puzzling. Just hire a Toyota Quality Manager and that person can teach the organization.
 
I have been pointing out that his background at Jag, Lotus and Tesla point to a lack of focus on Quality.

I was actually very encouraged that during the call he basically said, we stopped shipping cars that don't cut it and noting will leave the factory that isn't ok. Let's see.

On the volume, with the new projections, they burped out 20% of annual output in 50% of the year. So they have to get faster as building cars and building them right. I hope they can. I don't blame Peter for not being direct with weekly output. It's too low, his sales translate to 230is a month so under 60 cars a week.

Bringing in folks from low Quality entities like Cry Slur and Generic Motors is puzzling. Just hire a Toyota Quality Manager and that person can teach the organization.
I owned a Toyota/Lexus from 1984. OK I am 65:) I was one of the first to buy an 84 Camry. Toyota had a disaster with BZ4X EV. Range under 250miles, Less than 7KWh charging on 240V which is capable of 11KWh or so, very slow DC fast charge basically means this is not much better than Chevy Bolt EUV. On top of all this, they had to stop production because wheels would likely fall off due to lug nuts coming loose. Toyota used to test all their vehicles in Japan for years before going abroad. The new management does not believe in EV. It was a half baked attempt at the first EV. Even the Sienna minivan is not a plugin like Pacifica. Toyota is not the same company we know.

That said, I think Peter Rawlinson is more a CTO than a CEO. He should step aside and hire a real CEO and focus on improving software etc. I too as a stock holder with enough stock to buy GT by selling all LCID noted the same as others. Stock price was up a bit before earnings and just gave up the gains. I actually did expect this but did not sell. I think the IP is good and a large company with deep pockets who is late in this market could buy Lucid. Ford and GM have plans. Honda decided to go with GM. Toyota does not believe in EV. That leaves Nissan with no sedan and Ariya EV and poor leaf and Stellantis AKA Chrysler in the US. Yes, Saudi's want to buy 100k cars over many years and they are majority owners. How long will they wait for gold plated bullet proof version of Dream Edition they probably want?
 
Meh, yeah quarterly report was depressing, but we already knew it would be, partly due to the pause. They know the gotta get more cars out and there are a lot in that lot wrapped to go, and I think anyone who assumed it would all go perfectly in this crazy climate is perhaps too susceptible to wishful thinking. Lucid appears to be taking steps to improve output/quality, and this does not happen instantaneously. We won’t know until 2023 whether these steps were the right ones, but customers are getting their cars faster than Tesla buyers who reserved, while Tesla and Rivian are firing people while Lucid is hiring people. What’s the alternative?
 
Toyota has obviously been slow to get into eCars but that is normal for a company that has been successful building stuff their way (ice and then ice hybrids) for decades. Their basic premise is true, the current battery tech does not fit their vision of what should be used to power eCars. I was surprised at the mess their eCar was once released. To me Honda is even worse, their eCar was the typical too small to be useful for many folks kind of product like their original Insight was. I didn't like the GM partnership but it will jump started the transition. Nissan is a puzzling company. They have put next to nothing into the Infiniti line up. My dealer keeps asking if I what to upgrade to a new one and I have to remind them that there is nothing to upgrade into, no idea of what eCar they will have.
 
I was in at the Scottsdale service center today and we talked about the Q2 earnings a bit. My real take away is that the service centers are seeing very few issues now that the quality gates are at the factory. The time a car spends at the service center waiting on delivery is mostly dependent on how quickly customers pay and their availability to take delivery. They are doing multiple deliveries every day now.
 
Love or hate Elon, you have to admit that this was funny!
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